Google Among Bidders for $2 Billion Building
November 01, 2010 - New York
Google Inc. is a front runner to buy the massive building it occupies as its New York City headquarters in a deal that could be worth nearly $2 billion, according to a person familiar with the matter.
Other buyers from around the world are also chasing the block-long, 2.9-million-square-foot building in Manhattan's Chelsea neighborhood, the person said.
If the deal is done near $2 billion, the building's sale would make it one of the largest acquisitions of a single property in New York.
Google, if it completes the deal, would be jumping into a real-estate market in which sales of well-located office buildings occupied by financially strong tenants-like Google-have been sparking bidding wars.
Most recently, Boston's tallest skyscraper, the John Hancock Tower, drew a flood of bids and a $930 million sale price.
Google opened its New York office at the property, known both as 111Eighth Ave. and 76 Ninth Ave., in 2001.
It employs 2,000 people in the city, about a tenth of its global work force, said a spokesman, who declined to comment on the company's interest in the building.
The company in 2008 began leasing space in the Chelsea Market building across Ninth Avenue from the property, and now takes up a combined 450,000 square feet in New York.
Taconic Investment Partners LLC acquired the building, which once housed the headquarters of the Port Authority of New York and New Jersey, in 1998, when much of the property was still occupied by printing and warehouse tenants.
The New York State Common Retirement Fund and real-estate investment company Jamestown later bought stakes in the property.
The group has been shopping the building through Douglas Harmon, a senior managing director at Eastdil Secured. Google's interest in the building was earlier reported by the New York Post.
This article has been republished from Wall Street Journal
blog, most expensive, Google, building, Office buildings