Largest Office Building Deal for 2010 Made Possible by Google

January 03, 2011 / Albert Hamon, Mergers and Acquisitions Reporter

Google Inc recently purchased one of the largest pieces of commercial office building in Manhattan, New York. The office building is located at 111 Eighth Ave and takes a whole block, a suitable place for the company’s expansion in Manhattan.

Largest Office Building Deal for 2010 Made Possible by Google

The office building was purchased for $1.7 billion, bit it could climbed to $1.9 billion after taxes and fees are added on the bill, which could make it the largest real estate deal for a single building in 2010—according to a New York-based real estate research firm, Real Capital Analytics Inc.

Before the purchase, Google is the largest tenant in the office building and occupied about 550,000 square feet.

According to the company’s vice president of real estate and workplace services, David Radcliffe on Google’s blog, the company is excited on its continuous presence in the city, with about 2000 employees in both engineering and sales.

This year, the company also plans to build a company campus in Northern California with employee housing and other facilities including day care and fitness centers.

New York State Common Retirement Fund, Jamestown Properties, and Taconic Investment Partners sold the office building to Google, but the parties did not disclose the terms.

The entire office building takes whole block between West 15th and 16th streets. It’s a former industrial warehouse with 2.94 million square feet or 273,000 square meters, and said to have more floor space compared to the Empire State Building.

Spokeswoman for Google, Poornima Gupta, declined to remark about the occupancy plans.

Other major tenant in the office building includes Armani Exchange, Lifetime Networks, Deutsche Advertising, WebMD, Nike Inc, and was formerly occupied by the Port Authority of Manhattan.

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