Google May Buy New York Office Building for $2B

New York Post reports Google may shell out $2 billion to buy the trophy 111 Eighth Ave. building, one of the largest buildings in Manhattan. The 18-story Chelsea giant carries 2.9 million square feet of space and covers an entire city block -- between Eighth and Ninth avenues from 15th and 16th streets.At that price, […]

New York Post reports Google may shell out $2 billion to buy the trophy 111 Eighth Ave. building, one of the largest buildings in Manhattan. The 18-story Chelsea giant carries 2.9 million square feet of space and covers an entire city block -- between Eighth and Ninth avenues from 15th and 16th streets.

At that price, the sale works out to around $690 per square foot, very respectable for 2010 but far less than the $1,500 a square foot that was commonplace in the heady days of 2007.

Google has made no secret of its growth plans for the Big Apple and already rents over 550,000 square feet in the building -- considered the premier tech, entertainment, fashion, and media center in the city with tenants ranging from Nike to WebMD.

The owners modernized the building with 10-foot tall windows and a modern lobby with glowing glass disks, along with 24/7 security and a concierge. It is 98.7% leased and parking is available in the building, according to CoStar, a real-estate information firm.

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