Real Estate Weekly
Image default
Deals & DealmakersRetail

Google closes on Chelsea Market building for $2.4B

Google is officially the freshest offering at Chelsea Market.

The Mountain View, California company closed on its acquisition of the 1.2 million s/f building, purchasing it from Jamestown L.P. for $2.4 billion.

As it stands, the former Nabisco factory takes up an entire city block between Ninth and Tenth Avenues and 15th and 16th Streets, featuring more rentable square feet than the Empire State Building, though zoning allows Google to add an additional eight stories or 300,000 s/f to the building.

Chelsea Market is best known for its ground-floor food hall, which attracts more than 500,000 visitors per month. Jamestown will continue to manage the retail space.

Google’s current New York headquarters is across the street from the market, at 111 Eighth Avenue. It purchased this building from Jamestown, as well, for a $1.77 billion in 2010.

“For Jamestown, this is the highest profile example to date of our unique approach to creating value, but it’s consistent with transformative projects we’ve successfully undertaken across the country,” Jamestown President Michael Phillips said. “It’s a combination of identifying underutilized locations, creative and visionary repositioning, value-creating management, rigorous financial analysis, and patience.”

Jamestown was represented by Doug Harmon, Adam Spies, and Kevin Donner at Cushman & Wakefield, and Google was represented by Darcy Stacom at CBRE.

Google and Jamestown have also joined forces on several community initiatives during the past eight years, such as a computer lab for Robert Fulton Houses and the purchase and donation of a mural painted by the artists Julian Binford to the Hudson Guild.

Jamestown bought a 75 percent interest in Chelsea Market in 2003, while the sites redevelopment was still in its early stages. The company repostioned the property, creating the food hall and making appeals to tech, media and creative office tenants.

Related posts

Birch Group Reaches 90% Occupancy at 700 Alexander Park in Princeton


The McBride Cohen Company, Cantor Fitzgerald & Silverstein Properties Announce the Closing  of a $223M Construction Loan for Multifamily Development in Tempe, Arizona 


Post Brothers Purchases 2100 M Street Office Building for $66.77 Million