It looks like New York City will get a fifth Apple Store in Grand Central Terminal, after months of rumors.
The Metropolitan Transit Authority (MTA) Board's finance committee accepted a proposal for the store on Monday morning that is "expected to become official on Wednesday if and when it is approved by the full MTA Board," MTA spokesperson Aaron Donovan told PCMag.
If the plans pass, Apple will start building the 23,000 square-foot shop immediately. Construction is expected to take four months, according to the MTA proposal. The Apple Store would occupy a space on the north and northeast balcony that overlooks Grand Central's main hall. Apple will pay $5 million to the previous tenant, celebrity chef Charlie Palmer's restaurant Metrazur, to vacate the lease early.
The 10-year deal provides that Apple pays almost twice the rent that Metrazur paid to lease the space; the restaurant's base rent is $263,997 per year while Apple's rent will start at $800,000 with a three percent increase every year. The price of rent will jump to $1 million annually after the ninth year.
The MTA said in its proposal that the "transaction offers a very substantial economic benefit to the MTA compared to the status quo." With Apple as a new tenant, the MTA expects to make at least $5 million a year.
Apple plans to "make only very modest alterations to historic elements" in Grand Central, which was originally opened in 1871 and is the largest train station in the world with 44 platforms on two underground levels. Featuring 68 stores and 33 restaurants, the station sees about 700,000 visitors each days and was last renovated 11 years ago. The proposed store will be the biggest location in Apple's retail fleet of 331 stores.