NEW YORK | 150 West 34th St | FT | FLOORS

Old Navy site in Herald Square draws eye-popping price

By Steve Cuozzo | April 28, 2014 | 9:16pm

Photo: Shutterstock

Herald Square’s exploding retail market drove an eye-popping purchase price for 150 W. 34th St., the Old Navy store site between Broadway and Seventh Avenue.

The deal closed for $255 million last week, according to sources who also revealed that the Chera family’s Crown Acquisition Group partnered with Starwood Capital Group in the purchase.

The seller was a Greek family.

Old Navy is in the last few years of a 20-year lease at what’s now a four-story, 80,000 square-foot building that runs through to 33rd Street. It has enough air rights to permit a new building of around 300,000 square feet, which could be used for any combination of retail, offices, apartments or a hotel.

However, Starwood vice president Nicholas Doering-Dorival said, “At the current moment, we believe there is considerable upside in the existing retail box. We expect that retail rents and property values along 34th Street will continue to rise.” He declined to comment on the price.

The purchase price works out to about $850 per buildable square foot, a number once unthinkable in the West 30s — but that was before the Far West Side boom, including Hudson Yards.


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Vornado has counted 150 W. 34th St. as part of its portfolio since 2015, when the REIT acquired the building and the accompanying 226,000 square feet of zoning air rights from Starwood Capital Group for $355 million.

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Its too bad the city won’t encourage Vornado to sell 2 Penn Plaza to the city in exchange for more air rights at this site. That whole block is pretty much garbage, the only thing of interest to me is the art deco terracotta A.S.Beck facade. It also seems like it’d be cheaper to clear than the Hotel Penn site since most of the buildings on it are smaller.

pic from google maps


I agree. That block is horrible.