State Comptroller will probe Apple’s Grand Central deal

TRD New York /
Dec.December 01, 2011 09:44 AM

alternate
text
From left: State Comptroller Tom DiNapoli and renderings of the Apple store in Grand Central
The sweetheart deal that Apple got to open a store in Grand Central Terminal has caught the attention of State Comptroller Thomas DiNapoli, according to the New York Post, and he’s launched an investigation into whether the Metropolitan Transportation Authority was overly generous with the lease terms.

Apple is paying less rent than most other tenants, including neighbors on the balcony, and is the only of the 100 retailers in the terminal that doesn’t have to share its revenue with the agency.

“This is a prime property, and I intend to make sure that the MTA hasn’t given away the store,” DiNapoli said. Last year the comptroller conducted an audit of the agency’s real estate portfolio and found hundreds of vacancies thanks to poor marketing of properties. DiNapoli had said the MTA must straighten out its portfolio before more service cuts and fair hikes.

An MTA spokesperson noted that as part of the deal Apple promised to improve Grand Central infrastructure, including the installation of a bank of elevators, and paid $5 million to the previous tenant, restaurant Metrazur, to clear the space. [Post]


Related Articles

arrow_forward_ios
(Getty)

MTA proposes percentage-based rent payments for Grand Central retailers

MTA proposes percentage-based rent payments for Grand Central retailers
TRD's Erik Engquist and MTA Chief Development Officer Janno Lieber 

MTA development chief: Capital budget will be “cannibalized” without federal aid

MTA development chief: Capital budget will be “cannibalized” without federal aid
Related chairman Steve Ross and 35 Hudson Yards (Photos via Getty, SOM, MTA)

Hudson Yards pad sells for $7M; cash-strapped MTA gets a cut

Hudson Yards pad sells for $7M; cash-strapped MTA gets a cut
From left: Port Authority Bus Terminal, Grand Central and Penn Station (Wikipedia, Pixabay, CDC)

TRD Insights: Focus may shift to Manhattan’s 3 transport hubs in post-Covid office market

TRD Insights: Focus may shift to Manhattan’s 3 transport hubs in post-Covid office market
Rana Creek Ranch (Credit: Hall & Hall)

Lesser-known Apple co-founder re-lists 14,000-acre California ranch

Lesser-known Apple co-founder re-lists 14,000-acre California ranch
ICSC President Tom McGee (Credit: ICSC via YouTube)

ICSC requests federal help amid massive shutdowns

ICSC requests federal help amid massive shutdowns
An Apple store at  767 5th Avenue (Credit: Wikipedia)

Apple closes most stores in effort to curb virus spread

Apple closes most stores in effort to curb virus spread
Clockwise from top left: 66-26 Metropolitan Avenue, 11 Penn Plaza and 181 Livingston Street (Credit: Google Maps, 181 Livingston via Tishman Speyer) 

Tech inked big office leases in February, but not the biggest

Tech inked big office leases in February, but not the biggest
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...