The race for New York City's commercial real estate projects has been on all sides over the past year, with many contenders from the sports and casino worlds vying for entry.
On the leasing side, one of New York's biggest transactions for early 2024 is coming from the world of professional sports, with Major League Soccer (MLS) signing for 126,000 square feet across two floors of Vornado Realty Trust's (VNO) Penn 2 building. The deal nearly doubles the 64,200 square feet MLS previously occupied at 420 Fifth Avenue back in 2015, signaling just how aggressive the 29-year-old professional sports league is about having a major presence in New York.
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New York's largest CRE sports development last year also involved MLS, when the New York City Council approved a project in Willett Point, Queens, anchored by a 25,000-seat stadium that will be home to the New York City Football Club (NYCFC) in April 2024. The project will eventually also include 2,500 affordable housing units, a 650-seat school and a 350-room hotel.
The stadium project and residential portion of the development are being led by the NYC Economic Development Corporation, Related Companies, Sterling Equities and Langan. The NYC Economic Development Corporation and the developers began planning in January 2024 after acquiring the last vacant lot needed for the massive development from Eric Benaim for $12.3 million.
NYCFC Stadium would add to Queens' sports destinations, located just two football fields from Citi Field, home of the New York Mets, and the USTA Billie Jean King National Tennis Center, home of the U.S. Open, as well as close to where Mets majority shareholder and hedge fund manager Steve Cohen is proposing to build a casino in partnership with Hard Rock International on vacant land adjacent to Citi Field.
Related's involvement in the Willets Point redevelopment puts it closer to a number of competitors for its own casino plans at the 5.6-acre resort west of the Hudson Yards project. Related's proposal, in partnership with Wynn Resorts, is one of more than six vying for three available casino licenses in southern New York state.
One of the New York casino plans comes from Thor Equities, which is partnering with Saratoga Casino Holdings, the Chickasaw Nation and Legends to build a $3 billion facility in Brooklyn's Coney Island. The other, from SL Green Realty and its partners Roc Nation (Jay-Z's company) and Caesars Entertainment, would turn part of 1515 Broadway into a gambling destination.
The New York State Gaming Commission said in March that it likely won't announce the winner of a casino license in the downstate until late 2025, meaning a race will begin next year for developers to win.
Andrew Coen can be reached at acoen@commercialobserver.com