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Largest Apple Store - Grand Central Terminal in The Big Apple

By
Real Estate Agent

Grand Central Terminal

Courtesy of MTA

Apple has signed a ten year deal with New York's Metropolitan Transportation Authority to open the largest Apple Store yet within Grand Central Terminal.

Apple will pay the MTA (Metropolitan Transit Association) $800,000 in rent annually for the station's north and northwest balconies, nearly three times as much rent as Charlie Palmer's Metrazur restaurant (named after a commuter train that once ran along the Cote d'Azur en route to Monaco) was paying. In ten years, Apple's rent will go up to a million dollars annually.

Apple will be paying to refurbish the space, and must work with New York's Landmarks Preservation Commission to get any changes to the interior of the city landmark approved.

Back in June of 2007 I published a featured post on this blog titled: Grand-Central-Terminal-Restored-Rejuvinated-and-Still-Spectacular  I wrote in that piece the rich history of GCT and it's neighborhood how city and community leaders, including Jacqueline Kennedy Onassis, rallied against changes to Grand Central Terminal and saved it from the wrecking ball. The National Register of Historic Places named Grand Central Terminal as a National Historic Landmark and there was the Penn Central lawsuit that went all the way to the United States Supreme Court, which upheld New York's landmark law.

In 1994, the Metropolitan Transportation Authority (MTA) gained long-term control of Grand Central Terminal in the form of a 110-year lease from American Premier Underwriters, Inc., successor to the Penn Central Corporation.  Along with developer partnerships they implemented a comprehensive revitalization plan based on the Master Plan for Grand Central Terminal.

Grand Central Terminal Map Floor Plan

Courtesy of MTA

 
A new Midtown Manhattan Grand Central Terminal store, located at 42nd Street and Park Avenue, would capitalize on tourist and commuter traffic using the station. Apple's highest density of retail stores is already centered in Manhattan, where the company currently operates four stores: GM Building Fifth Ave location, an Upper West Side store on Broadway, a SoHo store, and one in the Meatpacking District on West 14th Street. 

It's great for Apple and tons of revenue for MTA. Unfortunately the MTA a quasi state agency has a history of mismanaging funds, crying poverty, raising subway, bus, metro north and long island rail tickets because they seem to always need more money even though most New Yorkers think of the MTA as a "gold mine." "Cha ching" 24/7/365.

Hopefully the rent they collect from Apple will be enough to build a new station on the Upper West Side that has long been proposed but got scrapped because it was no longer feasible once the Riverside Center project for Riverside South was approved and their plans do not call for a new metro north station as part of that project.

Hopefully commuters won't be too inconvenienced on days when Apple launches a new product. There is still the 125th Street Harlem station. MTA may need to build more stations in Manhattan and hopefully they will use the money wisely.

As always, the MTA is involved in controversy regarding leasing this space and the price per foot Apple will be paying. Less than other tenants in GCT. Many feel the MTA gave it away compared to retail space in other popular locations such as Time Square.

Grand Central Terminal Apple Store Opens Friday December 9th 2011

 

courtesy of:

Mitchell Hall, Associate Broker, The Corcoran Group

 

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Comments (44)

John Davison
Coldwell Banker - Cary, NC
Raleigh-Cary-Triangle NC

They certainly do know how to market!

Jul 26, 2011 04:59 AM
Kerrie La Guardia
ActiveRain, Community Manager - Kirkland, WA
Let it Rain!

Apple in the Big Apple...makes sense to me!  Oh and I call BS on Pat Kennedy visiting the Apple store before Bendels....yeah right!

Jul 26, 2011 05:38 AM
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

There is nothing like being in Grand Central at Christmas time. booming business

Jul 26, 2011 05:41 AM
Mitchell J Hall
Manhattan, NY
Lic Associate RE Broker - Manhattan & Brooklyn

Susan, Now you have a reason to leave the car at home and take the train in to GCT.

Sherry, The stock is high but it keeps going higher

John, Great marketers. Have you seen their plans for the new Apple campus in Cuppertino CA, it is round and looks like a spaceship.

Kerry, Who knew Pat Kennedy is such a geek visiting Apple before Bendels. I agree with you...yeah right!

Harry, It will be open in time for Christmas. November is it's anticipated opening. Because GCT is designated a historic landmark they can't make any changes to the interior without approval from the Landmark Preservation Commission. So there will be very little construction, all they need are tables.

 

BTW: When the MTA announced the Apple store they also announced a new Shake Shack for the terminal.

 
Jul 26, 2011 05:58 AM
Scotti Jowers
CENTURY 21 Shackelford French, Search West Monroe Homes - West Monroe, LA
Realtor - West Monroe, Louisiana Homes for Sale

Mitchell,

I've only been to your magnificent city once. I loved the visit! This is just one more great reason for me to come back! I've got to see this store! Thanks for sharing!

Jul 26, 2011 09:27 AM
Patricia Aulson
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH
Realtor - Portsmouth NH Homes-Hampton NH Homes

Thanks so much for the post today,  I enjoyed the read.   I would think this is "the place to have it!" 

 

Great post.

 

Patricia Aulson/ Seacoast NH & ME

Jul 26, 2011 12:33 PM
Gordon W. Miller
Green Mountain Real Estate - Burlington, VT

Thanks for the post. Many fond memories of Grand Central. Always inspiring to be in the Main Concourse. Agree that a very large Apple Store is inappropriate and not because I chose not to live in Steve Job's "walled garden", but having this great architecture sullied with the Apple logo is offensive and dis-respective.

Jul 26, 2011 03:01 PM
Malik Crichlow
GoodBuy Homes NJ Essex & Union County Real Estate specialist - Maplewood, NJ
Maplewood,SouthOrange,Union Real estate

Mitchell,

As a New Yorker I expect NY to always do it BIG! I think its great for Apple and its stockholders but maybe not so great for the Terminal.  Only negative may be the over abundance of people that will add to the normal crowds of Grand Central Station; but hey if they can put a stadium in downtown Brooklyn, anything is possible.

 

 

Jul 26, 2011 04:37 PM
Mitchell J Hall
Manhattan, NY
Lic Associate RE Broker - Manhattan & Brooklyn

Hi Scott, I hope you come back to visit us. IMO GCT is worth seeing with or without an Apple store.

Erica, I too was an early mac user. When I went into eal estate I had to get a PC. While many real estate related databases have become Mac compatible, I still keep a PC because there are still some things that I can do better on a PC even though I like Macs.

Patricia, Thank you, IMHO Apple got a great deal at the expense of NY commuters and tax payers.

Gordon, Green Mountain, Thank you, I agree,  As a real estate broker I'm all for development and progress but I am also an architectural preservationist. I have nothing against commercialization, NYC is one of the most commercialized places in the world. I believe the train station may get lost in what may end up as a mall. IMO MTA should stay out of the real estate business and worry about the subways, buses and trains which they do a poor job of managing. Apple got a great deal, MTA has no idea of the value of the properties they control.

Malik, I agree. When I heard some of the quotes from MTA board members I was appalled. They obviously don't care about trains, mass transit or transportation which is why they are a state agency. One board member said, "Every kid in Westchester will now want to come to GCT to go to "shake Shack and browse the Apple store". A destination for kids? A better mall than suburban malls? Another board member said of Penn Station (also owned and managed by the MTA) "the customers of Penn station are no longer second class citizens but third class citizens." What an idiotic statement from board members of the Metropolitan Transit Authority. The LIRR is the largest and busiest commuter raii in the country run by the MTA and they are calling their customers third world citizens. LOL

BTW: They were only able to put a stadium in downtown Brooklyn by using eminent domain. (another issue)

GCT is a train station not a mall. Maybe we should lease Central Park to Donald Trump. Great location for condos. How about a Google store in Saint Patricks Cathedral. How cool!

 

Jul 27, 2011 02:18 AM
Rodney Mason, VP of Mtg Lending
Guaranteed Rate NMLS# 2611 - Atlanta, GA
AL,AR,CA,CO,FL,GA,IN,MI,MS,NC,SC,TN,TX,VA

Having the largest Apple store in the country's largest city makes sense.  Since they have to work with the Preservation committee, the changes should blend well.

Jul 27, 2011 02:32 AM
Mitchell J Hall
Manhattan, NY
Lic Associate RE Broker - Manhattan & Brooklyn

Rodney, I agree Apple should have their largest store in the largest city in the country. They should buy a private building, or lease one or build one like every other private business rather then taking over a historic public building subsidized by tax payers because MTA board members think it's "kewl"

Jul 27, 2011 02:41 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Mitchell,

I was just telling Ron, about your post. What a great place to be visible, we love the oyster bar also.  Have a Grand day. A

Jul 27, 2011 03:14 AM
Mitchell J Hall
Manhattan, NY
Lic Associate RE Broker - Manhattan & Brooklyn

Hi Alexandra, Great place for Apple to be visible although due to the landmark status of GCT they may not be allowed to have very visible signage. I'm actually saddened by it. I'm a train lover and a lover of historic architecture. I'm afraid the spectacular rejuvinated circa 1913 train station is going to get lost in an Apple mall. I'm also a food lover. Charlie Palmer's Metrazur restaurant formerly located in GCT (named after a commuter train that once ran along the Cote d'Azur en route to Monaco) will probably find a new location but they will have to change their name.

Jul 27, 2011 03:37 AM
Thomas Haught
The Russell Realty Group - Saugus, MA

Thomas Haught

An enormous store in the heart of New York City's transportation system is probably a great idea, thinking of all the exposure it will get.

Apple store's are equal to a kid in a candy store for the tech junkies out there.  And we're all a little "techy" nowadays.

Jul 27, 2011 04:12 AM
Kimo Jarrett
Cyber Properties - Huntington Beach, CA
Pro Lifestyle Solutions

Interesting post. The retail space is huge, yet Apple only needs about $175.00 per hour profit to cash flow the rent, so while it's a big deal, it's also very profitable. They can control how much their refurbishing will cost, regardless, it's a great investment in marketing.

Jul 27, 2011 07:05 AM
Stephanie L. Solano
J. Philip Real Estate LLC Westchester County NY - Pleasantville, NY
Licensed Real Estate Agent

That is some expensive rent! Kicking myself that I didn't buy that stock last summer.

Jul 27, 2011 07:11 AM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

I would love to visit an Apple store and fondle all the products!  You're so lucky you can go to more than one location!  I have to get on a plane.

Jul 27, 2011 01:37 PM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

My first computers were all Apples and I still have many of them - now classics.  However, when I first got into real estate the Mac could not handle the MLS or other applications and I made the jump to PC.  I know it is more versitale now - but I am too cheap to go back.

Jul 27, 2011 06:56 PM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

You have to love NYC and thanks to you Mitchell I get the inside scoop

Jul 31, 2011 03:58 AM
Anonymous
Jane

Hey sounds interesting... Largest Apple Store...???? Can't beleive it. You guys are really lucky to stay close to it. It's a long distance for me.

Aug 16, 2011 12:16 AM
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