Google Buys Manhattan Building
Google (GOOG) is buying the huge Manhattan building that houses its New York City offices in a deal that values the property at close to $1.9 billion, The Wall Street Journal reported, citing unnamed sources.
The 18-story, 2.9-million-square-foot property at 111 Eighth Avenue, which covers an entire city block, between Eighth and Ninth avenues from 15th to 16th streets, is listed as the third largest building in Manhattan by square footage, Fortune reports. The Chelsea-neighborhood building is occupied with tenants like Nike (NKE), the Lifetime cable channel, and many telecommunication companies, according to the Journal. Google offices are in about 500,000 square feet of the building.
This is the biggest deal for a single building in the U.S. this year -- perhaps yet another sign the commercial real-estate industry is beginning to recover. Property values and interest have been increasing in major markets.
It's unlikely the deal will fall apart, the sources told the Journal, because Google has put down a large deposit, and the contract is binding. The seller of the property is a group that includes the New York State Common Retirement Fund, real-estate investment company Jamestown and Taconic Investment Partners LLC.
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