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MSG NEGOTIATING DEAL TO SELL FORMER HULU THEATER FOR $1B TO MAKE WAY FOR PENN
STATION OVERHAUL

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Back to Reading
May 17, 2023 10:20pm
Updated
May 18, 2023 6:11pm
Madison Square Garden exterior in 2019

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MORE ON: PENN STATION


 * NYC’S $7B PENN STATION CONCOURSE REBUILD MOVES AHEAD WITHOUT CONTROVERSIAL
   TOWERS


 * SERVE’S UP! PICKLEBALL COURTS ON TRACK TO OPEN NEAR NEW PENN STATION


 * MSG AND PENN STATION ARE ‘NOT COMPATIBLE’: MTA


 * MANHATTAN BOROUGH PRESIDENT ROLLS OUT MSG AND PENN STATION PLAN, BACKS 8TH
   AVE. OVERHAUL

An Italian private development company is negotiating a $1 billion deal with
Madison Square Garden to purchase the venue’s theater and knock it down as part
of its proposal to reshape Penn Station, according to a report.

The potential sale of the The Theater at Madison Square Garden and a service
road next to the Garden to the ASTM Group was reported late Wednesday by Crain’s
New York.

The outlet reported that a deal between the two companies is nearing, but a
source told The Post that an agreement is nowhere near close to being inked.

“We have a path forward to deliver our project that fully considers all aspects
from property acquisition to construction; financing, and the long-term
relationship between the new station building and MSG,” Peter Cipriano, senior
vice president for project management at ASTM North America, told Crain’s in an
emailed statement.

ASTM pitched a plan in March to renovate Penn Station as a cheaper alternative
after a previous $7 billion MTA proposal to overhaul the Midtown transit hub was
postponed.

Under ASTM’s plan, the developer would tear down the theater and build a grand
new entrance on Eighth Avenue across from the new Moynihan Train Hall. It would
also manage the station for 50 years.

ASTM pitched a plan in March to renovate Penn Station as a cheaper alternative
after a previous $7 billion MTA proposal to overhaul the Midtown transit hub was
postponed. Getty Images

Janno Lieber, chief executive of the Metropolitan Transportation Authority, told
the outlet the cost to demolish the theater and to build a new entrance could
cost as much as $2 billion.

The developer would also build a rectangular glass base surrounding the Garden,
allowing natural light into the basement of the train station from the west and
east.

The Italian redesign would clad Madison Square Garden with a glass base and
demolish the Hulu Theater to create a new grand entrance into the transit hub on
8th Avenue.Zhenhuan Xu

ASTM said it would renovate the country’s busiest train station with public and
private funds.

MSG would not confirm that a deal has been reached.

“As invested members of our community, we are deeply committed to improving Penn
Station and the surrounding area, and we continue to collaborate closely with a
wide range of stakeholders to advance this shared goal,” MSG told The Post in a
statement.

A sweeping of the 8th Avenue entrance, as illustrated, looks out towards the
street.Tomorrow Inc A rendering of what the new mid-block entrance could look
like under the Italian plan.Tomorrow Inc

While Lieber has previously expressed skepticism about extravagant proposals to
the Manhattan rail hub, he told Crain’s he’s “not against” this plan,
emphasizing the dire need for renovations.

“We can’t wait 20, 30-plus years,” Lieber said. “We’ve got to get it done now.”

The cost of the Italian plan is expected to be less than the other proposed $7
billion, but it’s not yet clear how much it would cost.Getty Images/iStockphoto

Renderings of the ASTM’s plan obtained by The Post in March show the designers
also aim to build a new entrance into the complex between Seventh and Eighth
Avenues in the space that was once occupied by a cab stand and now sits largely
unused. 

32
What do you think? Post a comment.

This proposal does not currently include the MTA’s planned underground walkway
that would finally link Penn Station directly to the nearby Herald Square subway
station, which is a major hub for the N/Q/R/W and B/D/F/M lines, a spokesman
confirmed.




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 * new york city
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 * 5/17/23

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