Google Parent to Buy Manhattan's Chelsea Market Building -- Update

By Keiko Morris 

Alphabet Inc., the parent company of Google, is expanding its real-estate holdings in Manhattan with plans to spend more than $2 billion in one of the city's prime tech neighborhoods.

The web-search giant is in contract to buy the Chelsea Market building at 75 Ninth Ave. from Jamestown LP, according to a person familiar with the transaction.

Google already has offices in the 1.2 million-square-foot building, which houses offices on the upper floors and the popular market's shops and restaurants on the ground and lower-level floors. The building is home to other companies, including Major League Baseball Advanced Media.

The transaction shows how technology companies are expanding their footprints across the U.S., driving up commercial-property values and adding high-paying jobs. Amazon.com Inc. has named New York City among the 20 finalists to host a second headquarters.

The deal also underscores the continued expansion of New York City's tech sector.

"The large tech firms, like Google, Facebook, Twitter [and] Spotify have found that there is adequate talent in New York to grow the business," said Michael Shenot, a managing director at real-estate-services firm JLL. "Almost all of them are evaluating their head count over the next couple of years and looking at options to expand in this market."

When Alphabet closes the deal, it will expand its property holdings in the Chelsea neighborhood, where it already owns 111 Eighth Ave. Google bought the 2.9 million-square-foot building in 2010. It has also leased over 200,000 square feet at Pier 57, a former freight terminal under redevelopment by Youngwoo & Associates LLC and RXR Realty.

The transaction was previously reported by The Real Deal.

Write to Keiko Morris at [e-mail]

(END) Dow Jones Newswires

February 06, 2018 14:40 ET (19:40 GMT)

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