Goodbye Macy’s, hello Apple.
Apple will move into the 11th through 14th floors of the Art Deco building and has additional options for the 9th floor, sources said of the deal, which The Post first reported was coming in January. The midtown Manhattan building sits on entire eastern blockfront along Seventh Avenue between West 31st and 32nd streets, cater-corner to Madison Square Garden and the Penn Station railway hub.
The deal is being done directly with building owner Vornado Realty Trust for a portion of the floors now being leased by Macy’s. The department store is moving its headquarters to Long Island City and its remaining space of over 300,000 square feet is up for sublease with pricing in the mid-$60s per foot.
But sources say Apple has signed only a five-year deal with the option to extend, and that Macy’s is still on the hook for any remaining term in its lease, which runs into 2035.
It also suggests that Apple is still on the hunt for a more permanent location, preferably one with large floorplates.
“Although it has a beautiful modern headquarters in Cupertino, Calif., and had toured the new buildings around Hudson Yards, Apple fell in love with 11 Penn,” a source told the Post.
As The Post reported last year, the computer company had been vying for space in Vornado’s reinvention of the nearby Farley Building on top of the post office. But it lost out to Facebook, which is now deep into lease negotiations.
Apple was represented by Peter Riguardi and Martin “Mack” Horner of JLL while Vornado was represented by Glen Weiss. Macy’s was represented by the CBRE team of Scott Gottlieb, Liz Lash and Ross Zimbalist and is handling the remaining sublease, which runs through April 30, 2035.
Apple currently has 52,000 square feet at 100-104 Fifth Ave. in the Flatiron District where it is bursting at the seams.
None of the parties involved could be reached for comment.