Boston Store Property Is Up For Sale

September 19, 2012

There may be an investment more attractive than a share of Apple’s stock—the company’s retail store properties. According to real estate sources, the property and building comprising the Boylston Street (Boston) store is for sale, and could fetch $35 million, a high price considering the size of the property. Some real estate sources expect the final sale price could be driven even higher by competitive investors who recognize the the reliability and attractiveness of the tenant, factors that tend to maximize profit. The high-profile Apple store opened in 2008 with a basement back-of-house space, and three levels of public retail space dominated by a spiral-glass staircase and a glass-curtain storefront. Update: On December 14, 2012 local media said the property had been sold to London-based investment firm Tribeca APL Boston LLC for $27.5 million. Rockland Trust provided $18 million in financing for the sale. Download (pdf) the deed transfer document, along with documents detailing the two investment firms that owned the building.

The property has been owned since 1968 by an unnamed private family from Atlanta (Geo.), according to city records. The family formed Heritage Legacy LLC to handle the lease transaction when Apple approached them in the years before the store opened.

Apple paid to demolish the existing building and build a new, remarkable structure to house its retail store. Construction costs are estimated to have been about $5 million, not including the costs of interior furnishings. It’s unknown how much Apple is paying on the lease per month.

For tax purposes the city values the land and property at $7,157,500. However, tax valuations typically understate the real estate value of a property, which is affected by both supply and demand.

In this case, Apple maintains the building, pays the annual property taxes and monthly utility fees, and has another 15 years left on the original lease, with an option to renew for five more years. Few tenants can provide that level of income security, so presumably there will strong competition for the property, which would drive up the final sale price.

Real estate sources note a similar high-value transaction for the future Third Street Promenade 2 (S. Calif.) Apple store property—last July it sold for $58 million, for a 11,241 square-foot parcel.

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{ 1 comment… read it below or add one }

Marktrek September 20, 2012 at 0120

With all of Apple’s cash on hand, they should probably look at buying it themselves.

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