Google Agrees to $2 Billion-Plus Chelsea Market Deal
Google agreed to pay more than $2 billion for Chelsea Market, a onetime Nabisco cookie factory across Ninth Avenue from the tech giant’s New York headquarters, a person with knowledge of the transaction said.
The seller of the 1.2 million-square-foot (111,500-square-meter) property is Jamestown LP, an Atlanta-based real estate investment firm, according to the person, who asked not to be identified because the transaction hasn’t been made public. A closing is expected in April, according to the Real Deal, which reported on the pending sale earlier Tuesday.
Google, a unit of Alphabet Inc., bought 111 Eighth Ave., a former warehouse occupying a full city block, in 2010. Since that acquisition, Google has sought to expand in that property as well as in others in the neighborhood. It already has about 400,000 square feet in the Chelsea Market building, according to the person with knowledge of the deal. Google’s plans for the property weren’t available.
Jamestown bought out Chelsea Market partners Angelo Gordon, Belvedere Capital and ATC Properties in 2011 in a deal that valued the building at $793 million, according to data from research firm Real Capital Analytics Inc.