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Apple's Sweet Grand Central Deal Could Get the MTA in Trouble

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Image via <a href="">thelightgraph</a>/Racked Flickr Pool.
Image via thelightgraph/Racked Flickr Pool.

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Apple got a suspiciously great deal on its Grand Central space, reports the New York Post, and now state authorities are investigating. Not only is Apple the only business in the building (aside from one Chase ATM) that doesn't have to share its profits with the MTA, but the company also got a bargain on its rent. The Post managed to obtain copies of recent Grand Central leases, and yesterday they revealed that Apple is paying $60 a square foot, while the incoming Shake Shack has to pay over $200 a square foot.

An MTA spokesman argues that Apple's rent actually adds up to $180 per square foot once you factor in the $5 million Apple paid to buy out the space's previous tenant, Metrazur restaurant. He also points out that Apple has funded new infrastructure in Grand Central. But State Comptroller Tom DiNapoli has announced that he wants to look into the deal. "This is a prime property," DiNapoli wrote in a statement released yesterday, "and I intend to make sure that the MTA hasn't given away the store."
· All Apple Store Grand Central coverage [Racked NY]
· State probing Apple's deal for a new store in Grand Central [NYP]
· One $weet deal [NYP]

Grand Central Terminal

87 E. 42nd Street New York NY