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Google's new $1.9 billion investment: An NYC building

Written by Andre Yoskowitz (Google+) @ 22 Dec 2010 22:48 User comments (9)

Google's new $1.9 billion investment: An NYC building Google has announced today the completion of their purchase of 111 Eighth Avenue in Chelsea, valuing the property at $1.9 billion.
The property is 2.9-million-square-feet and is the biggest deal in 2010 for a single building purchase in the U.S.

Google currently occupies 500,000 square feet in the building, and shares the space with Nike, Lifetime cable, WebMD and many telecoms.

The search giant is said to have won the contract because of its ability to close before the end of the year. The company has already put down a deposit in excess of $200 million.

111 used to be the headquarters for the Port Authority of NY and NJ.

Says Google of the deal:

Google New York started in a Starbucks on 86th Street with one person in 2000—a scrappy, highly-caffeinated sales “team.” After moving to a larger office in Times Square, in 2006 we relocated to our current home in Chelsea, at 111 Eighth Avenue—a former Port Authority building. In June of 2008, we took additional space in the Chelsea Market building at 75 Ninth Avenue. Now we have more than 2,000 Googlers working on a variety of projects in both sales and engineering—and we’re hiring across the board.

Today, we’re pleased to announce that we’ve closed a deal with the partnership of Taconic Investment Partners, Jamestown Properties and the New York State Common Retirement Fund to purchase 111 Eighth Avenue (also known as 76 Ninth Avenue). As part of the deal, we’ve retained Taconic Management Company to continue the leasing oversight services and management of the building on our behalf, providing the same level of customer service the building’s tenants have come to expect. We believe that this is a great real estate investment in a thriving neighborhood and a fantastic city.

Like the city, our New York office is a melting pot of cultures and ideas—it’s home to Googlers from more than 35 countries who speak more than 40 languages. They live in the five boroughs and spread across the tri-state area. We’re excited to continue to build our presence there.


(Pic via DCK)

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9 user comments

123.12.2010 1:36

I know Google has huge cash reserves but it still amazes me when I see them spend a portion of it.

223.12.2010 1:38

oh ozzy binliner where art thou? .. what the hell is with these companies wanting to be in the middle of these overcrowded overpriced cities? .. moronic.. doesn't benefit anybody at all..




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323.12.2010 1:55

Originally posted by ps355528:
oh ozzy binliner where art thou? .. what the hell is with these companies wanting to be in the middle of these overcrowded overpriced cities? .. moronic.. doesn't benefit anybody at all..
It will benefit how ever many additional people they hire because of them buying the building.

As for it being overpriced, sure that building is expensive but with a net income of $6.5 billion in 2009 alone (according to their SEC filing, here) Google can easily afford it.
This message has been edited since its posting. Latest edit was made on 23 Dec 2010 @ 1:55

"The only people who should buy Monster cable are people who light cigars with Benjamins." - Gizmodo

423.12.2010 12:32

Originally posted by Pop_Smith:
Originally posted by ps355528:
oh ozzy binliner where art thou? .. what the hell is with these companies wanting to be in the middle of these overcrowded overpriced cities? .. moronic.. doesn't benefit anybody at all..
It will benefit how ever many additional people they hire because of them buying the building.

As for it being overpriced, sure that building is expensive but with a net income of $6.5 billion in 2009 alone (according to their SEC filing, here) Google can easily afford it.
GOOG has $33 billion in cash, and that's after all the purchases they made this year.

523.12.2010 12:47

Originally posted by DVDBack23:
GOOG has $33 billion in cash, and that's after all the purchases they made this year.
The Wikipedia entry of purchases made by Google this year lists 24 acquisitions but only has dollar amounts on 10 of them. The total is $1.253 billion and does not include this building purchase.

That, along with the fact that they have $33 billion after spending more than $1.25 billion, is awesome and insane at the same time.
This message has been edited since its posting. Latest edit was made on 23 Dec 2010 @ 12:49

"The only people who should buy Monster cable are people who light cigars with Benjamins." - Gizmodo

623.12.2010 16:04

Maybe they need the space for the employees they already have, and see it as a better economic decision to be the landlord rather than pay rent to someone else.

They must know something about economics.

723.12.2010 23:18

Originally posted by Pop_Smith:
Originally posted by DVDBack23:
GOOG has $33 billion in cash, and that's after all the purchases they made this year.
The Wikipedia entry of purchases made by Google this year lists 24 acquisitions but only has dollar amounts on 10 of them. The total is $1.253 billion and does not include this building purchase.

That, along with the fact that they have $33 billion after spending more than $1.25 billion, is awesome and insane at the same time.
Apple's got $52 billion :o

824.12.2010 0:27

Originally posted by DVDBack23:
Apple's got $52 billion :o
With the success of the iPod and the record selling of Macbooks (as a result of the iPod, really) I'm not surprised. They don't discount their products at all (or extremely little) despite producing, and selling, millions of them.

"The only people who should buy Monster cable are people who light cigars with Benjamins." - Gizmodo

924.12.2010 0:57

Originally posted by Pop_Smith:
Originally posted by DVDBack23:
Apple's got $52 billion :o
With the success of the iPod and the record selling of Macbooks (as a result of the iPod, really) I'm not surprised. They don't discount their products at all (or extremely little) despite producing, and selling, millions of them.
And finally..(ill shut up now)...the eye popper:
http://www.businessinsider.com/the-apple-investor-dec-20-2010-12

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