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Pennsy Food Hall Bites The Dust

2 Penn Plaza overlooks Madison Square Garden and Penn Station.

Manhattan is losing a food hall, with Vornado set to close shop on The Pennsy in the next few weeks.

The space in 2 Penn Plaza, which is above part of Penn Station, is closing down on March 31, Commercial Observer reports. Tenants in the food hall include vegan stall Cinnamon Snail, Pat LaFrieda, The Little Beet, Ribalta, Sabi Sushi and Taco Dumbo, as well as a beer garden and bar.

The owner of Cinnamon Snail, Adam Sobel, had posted the stall's closure on Facebook, and confirmed to Commercial Observer that the operation was closing its doors. 

Vornado announced in 2016 that it was embarking on a massive overhaul of the area around Penn Station. The building at 2 Penn Plaza, which is on the West side of Seventh Avenue between 31st and 33rd streets, is part of the revamp and will be renamed Penn 2. 

The building’s entire curtain wall is due to be replaced, and both Penn 1 and Penn 2 are being combined to formulate a 4.4M SF campus. Penn 2 will get an extra 145K SF of office space, per CO.

In a challenging retail environment in New York City, food halls have become popular in mixed-used developments. With so many now in the market, there is increasing pressure for them to use creative ways to stand out, and not all of them have been able to survive. Over the holiday break, the Market Lane Food Hall in the Westfield World Trade Center closed down, after being open for just six months.