All that agita for nothing.
After fighting the bullish Steve Rothto save the Empire State Building’s spot on the skyline, Tony Malkin has won a reprieve—thanks to the miserable economy.
According to the Post, Vornado is putting off construction of the 1,200-foot tower atop the Hotel Pennsylvania “until market rents reach a point where it’s worthwhile to redevelop the site with an office building.”
Instead, the developer is going the unusual root of possibly investing in a building it may well tear down.
“It could cost $30 million just to renovate the rooms,” said one executive who was not authorized to speak on the record. “It’s 1,000 rooms and everything adds up.”
Vornado would also commit millions of dollars more to update the lobby and common areas.
The move makes some sense, though. While the office market may not be clamoring for more room, demand for hotels is still soaring.