GM Building Sale Won’t Affect Apple Store

The pending sale of the General Motors Building in Manhattan (NYC) for a record-setting price will not affect the Fifth Avenue retail store because of Apple’s long-term lease on the property. Facing a loan in default of almost $7 billion, real estate tycoon Harry Macklowe reluctantly put the GM Building up for sale earlier this year to raise capital. However, Apple reportedly signed a 20-year lease on its retail space in 2005, locking in lease payments and tenant conditions regardless of who owns the building. Several notables have owned the building in the past, including Donald Trump, each selling the building for a profit. Most recently, Macklowe purchased the building in 2003 for $1.4 billion, a record at the time for a U.S. office building. In February, 2007 he offered the GM Building as collateral on a loan to purchase seven other New York City office buildings. That loan has now gone into default, forcing the current sale. Macklow has narrowed the sale to two bidders, and hopes to receive a final bid of $3.4 billion.