Andre Yoskowitz
22 Dec 2010 22:48
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.