Google Close To Spending More Than $2B To Buy Chelsea Market Building
Early in 2018, Google is reportedly close to making what could be the biggest commercial real estate buy in New York all year.
The ubiquitous company is nearing the purchase of 75 Ninth Ave., the building that houses Chelsea Market, from Jamestown Properties for over $2B, The Real Deal reports. Google is already the largest office tenant in the 1.2M SF building, with around 400K SF, a footprint it amassed in a series of expansions that reportedly signal a desire to eventually occupy the office portion in full.
Once the transaction closes in a projected two months, Google is not expected to make major changes to the successful indoor retail hall, which Jamestown expanded in 2016. Other big-name office tenants at the property, which is almost fully occupied, according to TRD, include Major League Baseball and Food Network. The purchase works out to over $1,600/SF.
Google has seemingly been locked in a competition with Amazon and Facebook to integrate itself into every facet of modern life, and such ambition has led it to acquire and occupy a rapidly growing portfolio of office real estate in New York, just like its counterparts. Google has set itself apart by purchasing some of its real estate, rather than sticking to renting like Amazon and Facebook have so far.
The Chelsea Market building sits across Ninth Avenue from Google's full-block New York headquarters at 111 Eighth Ave., which it purchased in 2010 for $1.77B. Much like at Chelsea Market, it has clawed for the space it needs against tenants with ongoing leases. Preferring to keep its spaces in proximity, it also has a 240K SF lease at 85 10th Ave.