Grand Central landlord MTA is hopeful that the California-based company will answer the agency's request for proposal for balconies; deal seen as doable despite historic hurdles. The Metropolitan Transportation Authority is seeking new tenants for three spaces in its Grand Central Terminal, including more than 15,000 square feet on the East and North balconies that have been rumored as being the apple of the eye of a well-known California-based trendy tech company.
“We have spoken to Apple [Inc.],” said a spokesman for the MTA. “We hope that they will submit a response to the request for proposal.”
The news of the request for the space and of Apple's possible interest was first reported Monday in The Wall Street Journal.
The MTA is looking for a retailer or a restaurateur to lease the 15,230-square-foot space for a term of up to 20 years. It is currently occupied by Charlie Palmer's Métrazur restaurant, which has been located there since the retail overhaul in the terminal was completed more than 10 years ago. The agency is trying to take advantage of rising rents in Grand Central Terminal by bringing in a new tenant.
“Along with plans to sell our Madison Avenue headquarters, this is another example of the MTA trying to maximize the value of our real estate,” the MTA spokesman said. “We believe that this special site in Grand Central Terminal can generate more revenue to support transit services, and our competitive process will allow us to measure the extent of the current market.”
Interested tenants must respond to the request for proposals by June 27. The asking rent for the first year of the lease, once construction ends. is $800,000 per year, with an additional $40 per year for each rentable square foot. Prospective tenants can also propose percentage rent based on revenue although the MTA isn't requiring it.
Opening an Apple store in the terminal would not be easy. For openers, the terminal is landmarked and that the Landmarks Preservation Commission would need to approve any necessary work on the space.
“There are a lot of challenges, but if both sides want to get a deal done, they will get it done,” said Jeffrey Roseman, a retail broker at Newmark Knight Frank. “I think the MTA really wants to get them in there. They are the best retailer in our lifetime.”
The landmarks commission said it hasn't yet been approached by the MTA or Apple regarding a plan for a retail store at the Métrazur space. “It's very hard to say what would be approvable,” said a spokeswoman for the commission.
In addition, the agency is also seeking two tenants for spots in the Grand Central Terminal Market, whose main entrance is on Lexington Avenue. For a 725-square-foot space, currently occupied by Wild Edibles, the landlord is looking for a fish and seafood retailer and asking for a minimum annual rent of $145,000 in the first year, plus 8% of gross sales over the breakpoint of $1.8 million.
The other space is nearly 250 square feet currently occupied by Penzey's Spices. The MTA would prefer to see another spice seller or a tea merchant. The asking rent for that space is $71,400 for the first year, plus 6% of sales over the breakpoint of $1.2 million.
Posts
