Forget Groupon for a moment – Google is buying real estate…
Dec. 4, 2010
Two days ago, Google signed a contract to purchase the block-wide 18-storey NYC office building at 111 Eighth Avenue for $1.8 billion. The deal is the largest US commercial real estate purchase by a tenant ever.
We reported in October that Google was close to purchasing the property and now they’ve given a deposit for a deal that should close before January.
According to the New York Post, Google beat out a host of competing bidders and was led by a CB Richard Ellis team consisting of Darcy Stacom, Bill Shanahan and Steve Siegel.
“Google will gobble up the space like Pac-Man,” said a New York Post source familiar with Google’s current 500,000 square feet occupancy and its future plans to take over space in the building as it becomes available.
111 Eighth Ave. consists of 18 storeys, 2.9 million square feet of space and covers an entire city block – between Eighth and Ninth avenues from 15th and 16th streets. The building was the former Inland Freight Terminal of the Port Authority and is the eighth-largest commercial structure in Manhattan.
The East Coast headquarters of Google moved into the building this year and already rents over 550,000 square feet there. 111 Eighth is considered on of Manhattan’s premier tech, entertainment, fashion, and media centers in the city with tenants such as Nike, Barnes & Noble, and WebMD.
Its unclear what will happen to these tenants once Google is the new landlord.