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Google Close to Purchasing Manhattan Building for $2 Billion TMCnet Contributor Google (News - Alert) is in negotiations with its landlord to buy one of Manhattan's largest and most majestic buildings, which currently houses Barnes & Noble, Nike and the search engine giant's east coast headquarters, according to a New York Post report.
The deal, which has yet to be completed, would give Google complete ownership of the 18-story building located between Eighth and Ninth Avenues in the upscale Chelsea district.
Currently, Google rents 550,000 square feet of the 2.9 million square-foot facility, which takes up an entire city block. The Post is reporting that the building could cost Google as much as $2 billion. If the technology company ends up dishing out that amount, it would be paying less than $700 per square-foot, which is very reasonable for that part of Manhattan. At present, the ownership group is headlined by Taconic Partners, Jamestown and New York State Common Retirement. The news source reported earlier this year that the group has been marketing the building through investment adviser Douglas Harmon of Eastdil Secured.
The structure, which served as the old headquarters for the Port Authority of New York for years, was completely refurbished in 1998 when Taconic Partners took it over. The renovations included a complete overhaul of the lobby, the elevators and the fuel delivery systems. The building now offers 24/7 security, a concierge and a myriad of underground parking spots.
However, the unnamed source told The Post that the deal could still fall through, as Google is one of many parties interested in the building. That said, Google's $33.4 billion in cash and marketable securities certainly makes the company one of the most attractive suitors.
Neither the current ownership group nor Google have confirmed that negotiations are currently taking place.
Beecher Tuttle is a TMCnet contributor. He has extensive experience writing and editing for print publications and online news websites. He has specialized in a variety of industries, including health care technology, politics and education. To read more of his articles, please visit his columnist page. |