Vornado Realty Trust's renovation of New York's century-plus-old Penn Station, the busiest U.S. rail hub, is billed as one of the most significant urban infrastructure projects in the country.
It's not just because the train station is where hundreds of thousands of passengers come through daily for its multiple transit lines including the city’s subway system, New Jersey Transit, Amtrak and the Long Island Rail Road. The overhaul, part of Vornado's broader Penn District redevelopment, included creating wider corridors, converting the existing multilevel layout into a single, expansive train hall and adding new public plazas that made the station and surrounding area more inviting and pedestrian-friendly.
The redevelopment also helped revitalize an area that for years had been seen as "a forgotten corner of Manhattan, with aging buildings and declining retail spaces," Vornado said, adding that the "once-neglected station and neighborhood is poised for a major turnaround."
The redesign of the station also sought in some way to restore the area to its historical significance. Originally built in 1910, the station "stood as an architectural marvel" before it underwent a controversial transformation in 1963 to make space for Madison Square Garden that removed an iconic above-ground structure, Vornado said. Later, with Manhattan's prime retail corridors moving to SoHo and Fifth Avenue, coupled with lack of investment, the area "languished," Vornado said.
Vornado's revamp of the transit hub in a public-private partnership has been selected by real estate professionals familiar with the market as the winner of the 2025 CoStar Impact Awards for redevelopment of the year in New York.
About the project: The redevelopment aimed to address the station’s long-standing issues, including overcrowding, poor lighting and disorganization, Vornado said. Besides making the space more inviting, a notable aspect of the project also included adding popular new dining and retail options at the station, from Chick-fil-A and Shake Shack to H&H Bagels and Insomnia Cookies, that have made the transit hub a more appealing destination for commuters, according to the developer.
What the judges said: Ron Cohen at Besen Partners said the project "has a huge impact for many" as Penn Station "was in dire need of renovation and is a critical transportation hub for NYC with high volume of commuters passing through."
Josh Wein at RAL Cos. said the Penn Station retail redevelopment "transforms the nation’s busiest transit hub into a vibrant, functional, and welcoming space" and "revitalizes midtown Manhattan, bolsters local businesses, and repositions the area as a dynamic hub."
They made it happen: Vornado's team on the project included Haim Chera, executive vice president and head of retail; Ed Hogan, executive vice president and head of retail leasing; Jason Morrison, senior vice president of retail; Jenniel Davis, director of retail leasing; Nathan Marcus, retail leasing representative; Adam Malitz, director; and Julian Ferraldo, vice president of retail design and development.
CoStar senior market manager Grant Hunt contributed to this article.