The scaffolding is up and Apple has begun construction on its new store in New York City's Grand Central Terminal, AppleInsider has learned.
Apple gained approval for the new Apple Store last month from the Metropolitan Transit Authority (MTA), which owns Grand Central and governs the city's public transit system. It's no surprise that work has already started on the new store, Apple's fifth location in New York City, considering Apple said it would begin immediately once it got the MTA's go-ahead.
The Grand Central location will occupy a 23,000 square-foot space on the north and northeast balconies in the terminal's main hall. Part of the space was occupied by celebrity chef Charlie Palmer's restaurant Metrazur for the past 11 years, but Apple reportedly paid the restaurant $5 million to vacate its lease early.
Apple's 10-year deal provides that the company will shell out some serious cash to set up shop in Grand Central, according to MTA documents seen by PCMag. In fact, at a starting annual rent of $800,000, Apple is paying about twice what Metrazur paid in rent each year. The lease also allows for a 3 percent increase every year, with the price of rent jumping to $1 million after then ninth year of occupancy.
The MTA thinks it will benefit from the deal. It said in its proposal for the store last month that the "transaction offers a very substantial economic benefit to the MTA compared to the status quo." It expects to make at least $5 million a year with an Apple Store as a tenant.
Originally opened in 1871, Grand Central Terminal is the largest train station in the world with 44 platforms on two underground levels. Apple plans to "make only very modest alterations to historic elements" in the landmark.
Source:http://www.pcmag.com/article2/0,2817,2391172,00.asp?kc=PCRSS05039TX1K0000762
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