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Comptroller investigating Apple's lease with MTA

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amny Photo Credit: Renderings of the store/Courtesy of the MTA

The state is investigating if Apple's lease with the MTA for a store in Grand Central Terminal was too sweet a deal for the tech giant.

State Comptroller Thomas DiNapoli is probing the MTA to determine if it up too much to get the store in the famous commuter hub, as Apple will be the only retailer there that won't share profits with the cash-strapped transit agency, according the New York Post.

"This is a prime property, and I intend to make sure that the MTA hasn't given away the store," DiNapoli said in a statement.

Under the contract, Apple will lease space on the northeast balcony of the terminal for 10 years, starting at about $800,000 for the first year, with yearly increases. It also bought the lease of the previous tenant, Metrazur, for about $5 million.

Still, the rate is far lower than what other tenants in the terminal pay: Apple will fork over only $60 per square foot, whereas Shake Shack, which is also opening up in the terminal, will pay more than $200 per square foot.

The MTA, however, argues that Apple will actually pay $180 per square foot over the 10-year lease when the Metrazur buyout is factored in, and that the amount is more than 10 times what the previous tenant was paying, the Post said.

The MTA added that Apple will put up money for infrastructure improvements, including upgrades to an elevator bank.


Follow reporter Tim Herrera on Twitter: @tim_herrera

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