A rendering of the new $1.6-billion Penn-Farley complex.

NEW YORK CITY—The two decades long push by state political leaders and transportation officials to make key improvements and increase capacity at Penn Station is finally at hand.

On Friday, Gov. Andrew Cuomo announced the state had finalized a deal for the $1.6-billion Penn-Farley complex project. While state officials did not release a definitive start date for the project, the governor said the finalized deal between the state's Empire State Development Corp. and the joint venture of Related Companies, Vornado Realty LP, and Skanska AB allows for construction to begin on the transformation of the historic James A Farley Post Office building into a modern transportation hub.

The Farley Building redevelopment into the Moynihan Train Hall will create a new 255,000-square-foot train hall for Long Island Railroad and Amtrak passengers and increase Penn Station's total concourse floor space by more than 50%, state officials say. The Farley Building will also house 700,000 square feet of new commercial, retail and dining space within the mixed-use facility on Manhattan's West Side. The train hall is being named after long-transportation advocate—the late U.S. Sen. Daniel Patrick Moynihan.

The $1.6-billion project is being funded with $550 million from New York State, a combined $420 million from Amtrak, the MTA and the Port Authority of New York & New Jersey and federal grants, and $630 million from the joint venture development team of Related, Vornado and Skanska.

“Fifty years after the loss of the original Penn Station structure, passengers will once again experience a world-class rail hub worthy of New York,” Gov. Cuomo said. “The Farley Building's Moynihan Train Hall is two decades in the making, and we are proud that this project is finally a reality. With better access to trains and subways and state-of-the-art infrastructure, the Moynihan Train Hall seamlessly joins history, architectural design and function, bringing the nation's busiest rail station into the 21st century.”

Moynihan Train Hall will feature a new 92-foot high skylight to be built above the building's historic steel trusses. A total of nine platforms and 17 tracks will be accessible from the Train Hall. The Train Hall will provide direct connections to the Eighth Avenue subway, and create direct access to the train station from 9th Avenue for the first time.

Jeff Blau, CEO of Related Companies on behalf of the joint venture said, “Today represents a great milestone for the re-imagination of the Farley Post Office as the Moynihan Train Hall. We are grateful for the governor's leadership and the partnership of the State of New York, Long Island Rail Road and Amtrak. The Moynihan Train Hall, and the redevelopment of the rest of the building, will continue the dynamic transformation of the west side and offer unique, large-floor plate Class A office space in a historic New York location with unrivaled access to transportation and vibrant retail amenities.”

The Moynihan Train Hall, scheduled for completion at the end of 2020, is part of the Pennsylvania Station-Farley complex announced by Gov. Cuomo in September 2016. The Pennsylvania Station-Farley Complex also includes a redesign of the LIRR's existing 33rd St. concourse at Penn Station and an extensive renovation to the adjacent Seventh and Eighth Avenue subway stations. The plan calls for nearly tripling the width of the 33rd Street corridor, which is among the busiest sections of Penn Station and stretches along the station's lower level from Seventh to Eighth Avenue. Other improvements include upgraded lighting and digital screens to convey information.

In January 2016, Empire State Development, the MTA, LIRR and Amtrak issued an RFP soliciting proposals for the comprehensive redevelopment of the century-old, landmarked Farley Building, including a Train Hall and the surrounding office and retail space. RFP responses were received in April 2016 and reviewed by a panel of private and public experts from the real estate, construction, design and finance fields. The governor announced the selection of the Related, Vornado, Skansksa team as the winning development team last September.

The announcement on Friday by the governor signaled the financial close on the transaction. Kramer Levin served as condominium counsel to the developers on the closing of the project. The Kramer Levin team was led by Jonathan H. Canter, Inge Hindriks and Jackie Ryu, with Jonathan Caplan advising on intellectual property issues.

Fried Frank acted as counsel to the joint venture of Vornado Realty Trust and Related Companies in connection with the acquisition, development and financing of the Moynihan Station project.

The Fried Frank team includes real estate partners Tal Golomb and Robert Sorin; real estate of counsel Stephen Lefkowitz; and real estate associates Julianne Befeler, Melissa Brown, Holly Chen, Wesley O'Brien, Jason Robinson and Ross Wasserman.

NEW YORK CITY—The two decades long push by state political leaders and transportation officials to make key improvements and increase capacity at Penn Station is finally at hand.

Fried Frank acted as counsel to the joint venture of Vornado Realty Trust and Related Companies in connection with the acquisition, development and financing of the Moynihan Station project.

Instant Insights /

State Finalizes Deal for Critical Penn-Farley Complex Project

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