Barbara L. Nelson

NEW YORK CITY-When Macklowe Properties purchased the GM building for a record-breaking $1.4 billion in 2003 it rocked the real estate industry. But nearly three years later, after renovations and an expanded retail component at its base, the building has retained 78% of its orginal tenant base and escalated in value, said William Macklowe, president of Macklowe Properties.

"People didn't understand why, how and what we could do with the building at that price," said Macklowe at an Associated Builders and Owners of Greater New York Inc. luncheon Thursday. "We had a vision for the building. It's just pure value creation. The building continues to shine."

Macklowe's vision included the expansion of 14,000 sf of retail space, including Apple Computers newest venture in New York City that is to rival anything seen so far from the company's retail division. The store will feature a glass cube entrance at ground level, leading to a 25,000-sf store beneath the plaza.