December 10, 2007
It was recently announced that Willkie client The Port Authority of New York and New Jersey and a joint venture comprised of Vornado Realty, LP and Lawrence Ruben Companies Inc. have agreed in principle on the terms governing the leasing and development of a new approximately 1.3 million square foot Class A office tower above the Port Authority Bus Terminal. The joint venture will control the construction and leasing of the tower, as well as 60,000 square feet of retail space contained within the existing bus terminal.
Port Authority spokespersons and Governor Spitzer announced the general terms of the transaction, which is expected to yield proceeds of over $500 million to the Port Authority over the 99-year term of the transaction. The agency expects to use the funds to make major improvements to what has become the busiest bus terminal in the world, servicing 7,000 buses and 200,000 commuters each day. These changes will include the addition of new bus gates, the upgrade of existing gates, and improvements to pedestrian circulation routes and physical appearance of the nearly 60-year-old terminal. Vornado and Ruben will serve as the Port Authority's developer with respect to these bus terminal facility improvements. The new office tower to rise above the bus terminal is anticipated to be completed by 2013.
The deal is being handled by partner Steven Klein and associates David Drewes and Michael Sherman.