Google Parent to Buy Manhattan's Chelsea Market Building -- Update
February 06 2018 - 2:55PM
Dow Jones News
By Keiko Morris
Alphabet Inc., the parent company of Google, is expanding its
real-estate holdings in Manhattan with plans to spend more than $2
billion in one of the city's prime tech neighborhoods.
The web-search giant is in contract to buy the Chelsea Market
building at 75 Ninth Ave. from Jamestown LP, according to a person
familiar with the transaction.
Google already has offices in the 1.2 million-square-foot
building, which houses offices on the upper floors and the popular
market's shops and restaurants on the ground and lower-level
floors. The building is home to other companies, including Major
League Baseball Advanced Media.
The transaction shows how technology companies are expanding
their footprints across the U.S., driving up commercial-property
values and adding high-paying jobs. Amazon.com Inc. has named New
York City among the 20 finalists to host a second headquarters.
The deal also underscores the continued expansion of New York
City's tech sector.
"The large tech firms, like Google, Facebook, Twitter [and]
Spotify have found that there is adequate talent in New York to
grow the business," said Michael Shenot, a managing director at
real-estate-services firm JLL. "Almost all of them are evaluating
their head count over the next couple of years and looking at
options to expand in this market."
When Alphabet closes the deal, it will expand its property
holdings in the Chelsea neighborhood, where it already owns 111
Eighth Ave. Google bought the 2.9 million-square-foot building in
2010. It has also leased over 200,000 square feet at Pier 57, a
former freight terminal under redevelopment by Youngwoo &
Associates LLC and RXR Realty.
The transaction was previously reported by The Real Deal.
Write to Keiko Morris at Keiko.Morris@wsj.com
(END) Dow Jones Newswires
February 06, 2018 14:40 ET (19:40 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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