Google Said to be in $1.8B Contract for 111 Eighth Avenue
Bloomberg reports: According to a recent article on Bloomberg, 111 Eighth Avenue in Manhattan recently went into contract for $1.8 billion. The report cited an anonymous source as stating Google would be purchasing the building currently housing it’s New York headquarters, where it would expand it’s own space and leaseback the remaining space to tenants already occupying the space, which include Nike, Barnes & Noble, and Lifetime Networks.
The article quotes data from Real Capital Analytics (RCA) on the building, which covers the entire block between 15th and 16th Streets in Manhattan’s Chelsea neighborhood. Were the deal to close by December 31, the transaction would be the largest single-asset sale of the year by sale price, and though the property has 2.94 million square-feet – more than the Empire State Building – the price per-square-foot would equate to an exorbitant $600. The sale would certainly be a positive signal of the investment market, and “You can’t get a stronger vote of confidence for the strength of the New York office market,” stated to RCA managing director Dan Fasulo.
Ben Thypin, senior market analyst for RCA, joined Mr Fasulo in stating that Google “…can afford to pay more for this building because they’re already the occupant…A third party that wasn’t already a tenant might not have been able, actually definitely wasn’t able, to bid as high as they were.”
The building has an interesting history, as it was originally built for the Port Authority of New York before that government entity moved to the former-World Trade Center downtown. It was redeveloped in 1998, and in 2004 a joint venture between German investors, Taconic Investment Partners, and the New York State Common Retirement Fund purchased the building in a deal that RCA valued at $1.1 billion.
View the full article on Bloomberg: Google Said to be in $1.8B Contract for 111 Eighth Avenue
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Posted by: Nina Turner