In a lucrative deal, Google is set to acquire New York’s Chelsea Market building for over $2 billion from real estate investment firm Jamestown Properties. Located at 75 9th Avenue (across the street from Google headquarters), the 1.2 million square foot Chelsea Market Building houses the Food Network, the Major League Baseball (MLB) Network, and the NY 1 News Channel, among other businesses. Google itself already has a major foothold as the building’s largest tenant, leasing roughly 400,00 square feet of space in the property, according to a report by The Real Deal on Tuesday.
In its coverage, The Real Deal noted that Jamestown, based in Atlanta, valued the property at close to $800 million in 2011, when it bought out Angelo, Gordon & Co., Belvedere Capital and Irwin Cohen in the building for $225 million. In coverage of the Google-Chelsea Market deal Tuesday, Bloomberg.com wrote that Google has been seeking to expand its own property at 111 8th Avenue since purchasing that space in 2010 for $1.77 billion. According to The Real Deal, Google’s plans for the soon-to-be-acquired Chelsea Market property are somewhat vague for the time being, though a major shake-up is not expected.
A highly popular tourist attraction, Chelsea Market boasts, in its own words, “one of the greatest indoor food halls of the world, with more than thirty-five vendors purveying everything from soup to nuts, wine to coffee, cheese to cheesecake.” According to its website, the Market attracting 6 million national and international tourists every year, making it “one of the most trafficked, and written-about, destinations of any kind in New York City.” “Food Tours” are also regularly conducted, allowing tourists to sample the local cuisine. MLB Advanced Media, the internet branch of MLB which oversees MLB.com, occupies the fifth floor of the building, added 35,000 square feet on the second floor in 2014, according to a report at the time by Commercial Observer.com.
Google’s acquisition of the Chelsea Market building is expected to close in two months, according to NY Eater.com. According to a Daily Mail report Tuesday, Google have been forced to expand due to their failure to boot all of the tenants from their property at 111 8th Avenue.
By: Menachem Rephun