For the first time in years, some prized commercial real estate inside one of New York’s most iconic buildings is up for grabs — and new tenants want in.
Grand Central Terminal is undergoing a commercial revamp as prior leaseholders wrap up their decade-long tenures. What was once primarily a stunning transit hub is now also known for more than 100 retailers and eateries. With a number of those leases ending, the terminal’s landlord, the Metropolitan Transit Authority, has selected a crop of newcomers that promise to transform the terminal into an even more prominent retail and dining destination.
As The Post previously reported, Art Bird & Whiskey Bar, to be run by Oprah Winfrey’s former personal chef, Art Smith, will replace Dishes, a grab-and-go eatery. And Tartinery, a French open sandwich concept, will replace the Irving Farm cafe.
These new arrivals follow two 2016 openings: of the Scandinavian fare-serving Great Northern Food Hall, in the terminal’s high-ceilinged Vanderbilt Hall, and of the high-end restaurant Agern, which doles out food from the same region. Also last year, Prova Pizzabar, run by celebrity chef Donatella Arpaia, booted out a Two Boots Pizza outpost.
The MTA recently issued four Requests for Proposals (RFPs) to fill spaces previously occupied by grooming outfit the Art of Shaving, notebook maker Moleskin, Belgian chocolatier Neuhaus and craft beer store Beer Table. (Two of the RFPs have closed, the other two are still open.) The transit agency expects to kick its new leasing process into high gear over the next two years, with roughly 12 more RFPs expected for 2018.
Such an overhaul doesn’t happen often in Grand Central. This is only the second time the MTA has faced this many openings within the terminal since its renovations in the ’90s, which doubled the existing commercial real estate to 170,000 square feet, according to reports at the time. The MTA courts tenants through a public RFP process, in which GCT hopefuls outline a business plan and make a rent offer for a 10-year lease period. The landlord whittles down applicants to the top 10, then ranks those on a scoring system based on the rent offered and their ability to attract straphangers.
With each RFP the MTA has issued since the renovations, there has been an increase in leasing revenue, according to MTA spokesperson Aaron Donovan.
The CEO of the Gerber Group, Scott Gerber, was convinced to submit a bid to run a bar out of the terminal’s historic Campbell Apartment two years ago. “We don’t really do [RFPs],” says Gerber, whose company is behind nightlife hot spots like Mr. Purple and The Roof at the Viceroy hotel. “We didn’t expect to win.” The hospitality firm bid $1.1 million per year to run the bar — beating out the prior tenant’s bid of $800,000 a year.
Upon winning, Gerber carried out a 10-month restoration of the lavish space — originally the office of railroad exec Joseph Campbell — rehabbing the painted 25-foot beamed ceilings, leaded glass windows and grand fireplace. To make it more chic, Gerber Group replaced the aging furniture with customized pieces and revamped the cocktail menu. To appeal to a younger crowd, it eliminated the dress code. The space reopened as The Campbell this May.
“There was a time when people really didn’t want to hang out in train stations,” Gerber says. “Since the restoration, little by little, the MTA has been able to up the ante with the quality of tenants, because people want to be there.” The bar is ahead of sales projections for the year; Gerber is already planning to apply to stay after The Campbell’s decade-long lease is up.
“Iron Chef” judge Donatella Arpaia beat out numerous other RFP applicants in her quest to replace Two Boots Pizza. Her restaurant, Prova Pizzabar, serves artisanal pizza, wine, beer and craft cocktails. “You never went to Grand Central for the food,” she says. But the arrival of spots like Shake Shack and Magnolia Bakery convinced the chef, who previously worked in fine dining, that it would be the perfect spot to launch a casual brand. Because sales have met her expectations, she says, “I plan to expand the brand in the new year.”
Perhaps the most striking change to come will be the overhaul of the two central kiosks in the lower level dining concourse, currently held by Dishes and Irving Farm.
Tartinery will move into Irving Farm’s space by next summer, according to owner Nicolas Dutko. The eatery already dishes out open-faced sandwiches in Nolita, at the Plaza Hotel and at the Hudson Eats food hall in Brookfield Place.
Dutko’s proposal was to serve tartines, salads and soups alongside beer and wine. (He and his team are still weighing whether or not to stock liquor.) Unlike Irving Farm’s current grab-and-go setup, Tartinery will include private seating and maybe even table service.
“The options in the dining concourse right now are very mainstream,” Dutko says. “We have a little more of a sophisticated product. Not everybody knows it.”
Art Bird & Whiskey Bar, which is set to open one kiosk over from Tartinery in March of next year, will include private seating where patrons can drink whiskey on the rocks and in cocktails.
Smith says patrons should expect “hand rolled biscuits, mac and cheese made with local cheeses, crispy buttermilk fried chicken from antibiotic-free and humanely raised birds, and our multilayer chocolate cakes.”
As with The Campbell, these leases mean higher rents — a boon for the cash-strapped MTA. With this year’s new arrivals, rental income increased by 7 percent, more than the 4.5 percent and 1.1 percent gains notched in 2016 and 2015.
As for incoming tenants, Art Bird will pay $4.1 million in rent over the next 10 years, higher than Dishes’ $3.3 million offer. Tartinery pitched the second-highest rent out of 11 RFP applicants, offering $430,000 for its first year plus a percentage of gross sales, with an agreement to a 3 percent rent increase per year. (The total revenue stream over 10 years is $3.7 million.) But the eatery scored highest on “expected indirect economic benefit to the MTA,” according to Donovan.
The Grand Central newcomers hold that exposure in one of New York’s most beloved landmarks is immeasurable. “This is a game changer,” Dutko says. Smith echoes the sentiment: “Being able to bring something so near and dear to my heart to the folks at Grand Central is a once-in-a-lifetime experience.”