Google Set to Close on Manhattan Headquarters by Year-End
New York Post reports: After announcing its intent to buy its current New York headquarters in November, Google recently made known that it would purchase 111 Eighth Avenue for $1.8 billion in cash on Wednesday, December 22, after the existing mortgage on the property is cancelled. Google currently leases roughly one-quarter of the block-long office building in Manhattan’s Chelsea neighborhood, which is 98% leased all together. The formidable price is a rarity in the current market, even for a company of Google's size. Real Capital Analytics' managing director Dan Fasulo chimed in on the sale, stating that, "There were a bunch of global investors salivating over the building, but at the end of the day, a corporate user can always pay more than an investor."
The last obstacle to the official sale closing is an existing $500 million mortgage from Greenwich Capital that must be defeased from a larger pool of mortgages that was compiled in 2004. The cost of doing this may add $75 million to Google’s purchase price, which in addition to other taxes and fees may bring Google’s final cost for the building to $1.9 billion.
View the full article on New York Post: Google Set to Close on Manhattan Headquarters by Year-End
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Posted by: Nina Turner