The firm also has fielded unsolicited offers ranging from $130 million to $150 million on a 17,000-sf piece of Madison Avenue retail it purchased for $113 million earlier this year. The Westbury Hotel blockfront at Madison Avenue between 69th and 70th streets is currently 100% occupied. "People said we were crazy," Fascitelli said. "But rents are approaching $1,000 per sf on Madison Ave. Paying over $600 per sf and getting $1,000. It's not stupid."

The REIT is looking to rework a number of recently acquired mall properties including the Broadway Mall in Hicksville, South Hills in Poughkeepsie and Springfield Mall in Springfield, VA. "We buy property we can improve," Fascitelli added.

In the long term, Vornado sees the potential redevelopment of the Hotel Pennsylvania on 7th Avenue at 33rd Street. The hotel portion contains one million sf with 1,700 rooms and a commercial portion contains 400,000 sf of retail and office space. "The Penn Plaza district is the most dynamic growth area in New York City," said Fascitelli. Vornado and the Related Cos. were recently selected to redevelop the nearby Farley Post Office, to be dubbed Moynihan Station. Fascitelli said air rights and the possible relocation of Madison Square Garden are keys to the effort.