Why Kushner's Grand Development Plans Are on Hold

The transcript discusses Vornado's public acknowledgment that a building project in Manhattan, involving the Kushner family, is unlikely to proceed. Steve Roth of Vornado has been avoiding discussing the project for years, but now confirms its infeasibility due to high costs and the need to acquire retail space. The project aimed to include a 5-story retail mall, but financial and market challenges make it unviable. With debt due in February 2019, Vornado must devise a plan to satisfy lenders and make the building profitable.

What has Steve Roth been avoiding for the past six years regarding the building project?

• Hiring new office brokers

• Meeting with the Kushners

• Discussing the project's feasibility

• Investing in new technology

What was the main reason given for the Kushner vision being unfeasible?

• Insufficient office space

• High cost of acquiring retail space

• Environmental concerns

• Lack of interest from investors

What was one of the proposed features of the building that raised concerns?

• A rooftop garden

• A 5-storey retail mall

• A luxury hotel

• An underground parking lot

Why is the timing of the project considered critical?

• A new competitor is entering the market

• The debt is due in February 2019

• The lease agreements are expiring

• The building is scheduled for demolition

What does Vornado need to do to address the financial challenges?

• Sell the building

• Lease up the building and make it profitable

• Partner with a new investor

• Reduce the building's height