The MTA Is Buying Grand Central Terminal
The Metropolitan Transportation Authority is buying Grand Central Terminal and Metro-North Railroad’s Harlem and Hudson lines in a deal worth $35M.
Midtown Trackage Ventures owns the iconic building and the lines, but has been leasing them to the agency, Commercial Observer reports. The MTA had been paying an annual rent of $2.4M. That lease ran until 2274, but the deal allowed for the MTA to buy the famed building.
“This was a no-brainer, from a financial standpoint,” MTA Chief Development Officer Janno Lieber said, according to the publication. “The interest rate environment—and the $500K discount offered by the seller—means it’s cheaper to buy it now than to pay rent for all that time.”
The MTA expects the full board to approve the acquisition plan on Thursday.
The purchase means the MTA has “unencumbered control and responsibility of its operating environment” for the first time, officials said. Grand Central serves New York City's northern suburbs and has connections to the subway's 4, 5, 6 and 7 lines. It also has a variety of retail, including an Apple Store, for which the MTA had already served as landlord.
