- Penn District development expands as Vornado acquires 490 Eighth Avenue for $12M.
- Vornado secured 66,000 SF of additional air rights for $9.2M.
- The new assemblage could allow a residential tower up to 325 feet tall.
- McDonald’s will remain a tenant in any new development on the site.
Major Expansion for Penn District
The Real Deal reports that Vornado Realty Trust is expanding its Penn District footprint. The firm acquired a McDonald’s site at 490 Eighth Avenue. It also secured about 66,000 square feet of air rights from nearby buildings.
Vornado paid $12M for the site. This purchase adds to eight contiguous lots the REIT already controls. The assemblage sits across from Madison Square Garden and near Penn Station.
Assemblage Strategy Intensifies
Alongside the McDonald’s acquisition, Vornado paid $4.4M and $4.8M for air rights over 260 West 35th Street and 254 West 35th Street, respectively. These deals, brokered by KSR, bring key parcels and new development potential. They support a larger mixed-use or residential play in the busy transit district. This push also mirrors Vornado’s broader shift toward adding more residential units in the Penn area.
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Development Prospects Grow
Filings indicate that the McDonald’s location will remain as a retail tenant within any new project. Vornado’s original plan for a 475-unit apartment tower—now slightly expanded—may increase in density or height, potentially to 325 feet or higher, as the additional development rights and land acquisition create new options for the Penn District development.
Looking Ahead
Vornado continues to assemble land as part of a broader Penn District repositioning strategy. The firm is focusing on major mixed-use and residential developments. This approach supports long-term redevelopment efforts across the area.
However, the company has not shared final plans for the expanded site. Still, the larger assemblage signals continued momentum in Midtown’s evolving landscape.
