On the eve of its grand opening, the newest Apple Store is under investigation

On the eve of its grand opening, the newest Apple Store is under investigation
The agency that oversees New York's MTA, the Committee on Corporations, Authorities and Commissions, is being asked to look into the deal Apple made with the MTA that allowed the former to open a new Apple Store in Grand Central Station. State Assemblywoman Linda Rosenthal said that it is important to see if the state's transit agency was able to secure a deal with Apple that was in the best interests of New York's subway, bus and train riders.

According to the New York Post, Apple's new location is expected to generate revenue of $100 million annually for the tech giant. Yet, out of the roughly 100 retailers in the building, Apple is the only one that was able to sign a lease without agreeing to a revenue sharing deal with the MTA, which is something that will certainly come up in the investigation. The 23,000 square feet that Apple has leased is under contract for ten years, and now is the largest Apple Store in existence. The location is highly desirable for a retailer with 750,000 people passing the store daily and 1,000,000 walking by on holidays. That is why the $60 a square foot that Apple is paying is of interest to the committee. That rate is far lower than what Apple's neighbors are paying, including Michael Jordan's Steakhouse on the opposite balcony.

For its part, the MTA insists that the deal with Apple is the best that could be made for the location.  The previous tenant in the location, Metrazur, was paid $2.5 million to leave the location 8 years before its lease was up and another $2.5 million for renovations. Reports say that the restaurant was paid the $5 million from the MTA, but the agency says it has been reimbursed by Apple.

The Apple Store at Grand Central Station is set to open Friday at 10am. The store closes weeknights at 9pm, 7pm on Saturday and 6pm on Sunday.

source: NYPost via BusinessInsider

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