One of the remaining bidders for the West Side rail yards, a team of the Durst Organizaiton and Vornado Realty Trust, said it is expecting that S.I. Newhouse’s Condé Nast will remain part of its bid as an anchor tenant.
“We expect that Condé would be our partner,” said Durst spokesman Jordan Barowitz.
However, Condé, which began a new search for space after Tishman Speyer was named the winner over the Durst/Vornado team in March, did not make clear its plans, as a company spokeswoman, Maury Perl, declined comment.
In the original Durst/Vornado bid, Condé expected to take about 1.5 million square feet on the rail yards, a move made easier given that its 4 Times Square headquarters is owned by Durst.
But after the bid fell short (Tishman was announced the winner but failed to ever sign an agreement before its deal collapsed in recent days), Condé began talking to other potential landlords. And, according to a real estate executive, the firm is still in discussions to go to a Ninth Avenue site owned by Brookfield Properties (BPYPP) just east of the West Side rail yards.
If the Durst/Vornado team is able to keep Condé as an anchor tenant, it would certainly enhance its bid with a sense of certainty that Tishman Speyer lacked given its anchor tenant, Morgan Stanley, dropped out of the bid.
As for the other remaining developers, an Extell Development representative has said the company expects to rejoin the effort to win the rail yards, and Steve Ross’ Related Companies is considering a bid, according to a person familiar with the company.
