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-   -   NEW YORK | 111 8th Ave (Google) | 264 FT | 18 FLOORS | 1931 (http://forum.skyscraperpage.com/showthread.php?t=187098)

HomrQT Dec 6, 2010 6:57 PM

NEW YORK | 111 8th Ave (Google) | 264 FT | 18 FLOORS | 1931
 
http://online.wsj.com/article/SB1000...545769418.html

Quote:

Google Inc. has signed a contract to buy the building that houses its New York City offices, in a deal that values the property at close to $1.9 billion, according to people familiar with the matter.

The deal for the massive 2.9-million-square-foot property at 111 Eighth Avenue is the biggest for a single building in the U.S. this year.

While the building is located in Manhattan's Chelsea neighborhood—and not one of the city's tony office districts—it is popular with tenants like Nike Inc., the Lifetime cable channel and WebMD, the Web publisher. About one-third of its space is occupied by telecommunication companies.

Google occupies about 500,000 square feet in the building and earlier this fall was reported to be a front-runner in the bidding for the property. The company won partly because it knew the building well and was willing to close the deal before the end of the year, according to people familiar with the matter. While the deal could still fall apart, that is unlikely because the contract is binding and Google has put down a large deposit, these people said.
Should Google have had a new building built for that kind of money?



-article from the wall street journal

mhays Dec 6, 2010 8:09 PM

What do you mean "should"? Do you have insight about their needs that suggests a new building would serve them better?

HomrQT Dec 7, 2010 4:23 PM

Quote:

Originally Posted by mhays (Post 5082889)
What do you mean "should"? Do you have insight about their needs that suggests a new building would serve them better?

Simply that $1.9 billion could have bought them a new building instead of purchasing an already in use building. I understand there are benefits to purchasing the building they are currently residing in, as in not having to move or wait for a new building to be constructed, among other things. But thanks for sounding like a dick when I just wanted to know if anyone else had some "insight" on why they made the decision they did.

mhays Dec 7, 2010 4:39 PM

As you reach adulthood, maybe you'll learn to interpret questions without assuming the worst.

You might also learn to ask a clear question.

HomrQT Dec 7, 2010 5:02 PM

Quote:

Originally Posted by mhays (Post 5084006)
As you reach adulthood, maybe you'll learn to interpret questions without assuming the worst.

You might also learn to ask a clear question.

I asked a clear question that was grammatically correct. Your lack of understanding and pretentiousness is very obvious here. I threw the article out there as a decent read and to wonder if anyone else thought that the juggernaut that is Google should have put in for their own new building in NYC or not. If you have nothing to contribute, and are only here to try and pick people apart, skip my threads and go tug on it somewhere else.

pj3000 Dec 7, 2010 6:10 PM

I get your question and won't try to pick it apart, HomrQT. I recently read something about this purchase. 111 Eighth Ave is one of the most coveted properties in Manhattan, the 3rd largest building in NYC and is the former Port Authority HQ. It houses a massive telecom fiber infrastructure and huge back up generators. It's pretty much perfect for Google's east coast headquarters/main operations center... and current tenants are the cream of the crop when it comes to technology and fashion/entertainment. I was on this building a few times when I lived there... it's really nice and HUGE!

http://www.111eighth.com/

HomrQT Dec 7, 2010 7:46 PM

Quote:

Originally Posted by pj3000 (Post 5084098)
I get your question and won't try to pick it apart, HomrQT. I recently read something about this purchase. 111 Eighth Ave is one of the most coveted properties in Manhattan, the 3rd largest building in NYC and is the former Port Authority HQ. It houses a massive telecom fiber infrastructure and huge back up generators. It's pretty much perfect for Google's east coast headquarters/main operations center... and current tenants are the cream of the crop when it comes to technology and fashion/entertainment. I was on this building a few times when I lived there... it's really nice and HUGE!

http://www.111eighth.com/

Holy crap, it takes up an entire city block!!! The first time I saw it on streetview on one of the short sides I was pretty unimpressed for $1.9 billion. Now seeing how long the building actually is... the land that thing covers alone is worth a fortune. It's like a skyscraper resting on its side. Thanks for sharing man.

DJM19 Dec 7, 2010 9:51 PM

edit: wrong post.

ethereal_reality Dec 7, 2010 10:58 PM

I was pretty much amazed when I googled 111 Eight Avenue the other day.
Only in New York, could a building this HUGE exist without most people knowing anything about it.
2.9 Million square foot is massive!

Innsertnamehere Dec 8, 2010 2:04 AM

wow! takes up a whole city block!!

Crawford Dec 8, 2010 4:50 AM

Quote:

Originally Posted by HomrQT (Post 5082775)
http://online.wsj.com/article/SB1000...545769418.html

Should Google have had a new building built for that kind of money?

In Manhattan, a new building of this size would cost a hell of a lot more than $1.9 billion.

This building is enormous, covering 2.9 million square feet. Google got a decent deal on a per square foot basis.

Looking at recent office new constuction in Manhattan, I don´t think Google could construct such a building for less than $3 billion.

And that assumes they want new construction. Many (most?) creative firms prefer older construction. In Manhattan, there´s definitely cachet to working in a historic building in a trendy neighborhood.

And Google needs space now, not in 5 years. They have massive expansion needs at this site.

Flamesrule Dec 10, 2010 9:10 PM

Quote:

Originally Posted by Innsertnamehere (Post 5084707)
wow! takes up a whole city block!!

Yeah I was surprised by that too.

mrnyc Dec 10, 2010 10:37 PM

haha i live right across the street from it and my spouse worked in there for google. it is hilarious to walk around in. you can just walk around forever in long halls that look like something out of that early george lucas film thx-1138. i think its the second largest in the city, not sure about that, but i am sure that it has more space than the empire state building. makes sense google bought it in case they want to expand and besides what the heck else were they going to do with all that loot anyway? :rolleyes:

Lecom Dec 11, 2010 7:50 PM

This building is larger than the ESB by area

http://www.observer.com/files/full/1...nvestments.jpg
http://www.observer.com/files/full/1...nvestments.jpg

bbeliko Dec 11, 2010 9:58 PM

It's a beautiful building, here's a link to a slide-show with images from inside "googleplex east".
http://www.informationweek.com/galle...leID=197006864

NYguy Dec 12, 2012 3:29 AM

http://www.crainsnewyork.com/article...TATE/121209956

Google angles for more of Chelsea Market
Unable to grow in its own West Side building a block away, the Internet giant is hoping to expand its footprint in the market to nearly 300,000 square feet.



By Daniel Geiger
December 5, 2012

Quote:

Unable to stretch out as quickly as it may have initially hoped at its own building on 111 8th Ave., space-hungry Internet giant Google is taking another bit out of its neighbor's building.

The California-based company is in talks to take about 75,000 square feet at Chelsea Market, adding to the roughly 95,000 square feet the company leased at the building less than two months ago.

There are currently no sizeable vacancies at Chelsea Market, which is just one block west of 111 8th Ave. at 95 9th Ave., but a source familiar with the negotiations said opportunities may exist to create space for Google.

"There are a few tenants in Chelsea Market that can be moved around to open up the space," said the source, who commented anonymously because the transaction was still being arranged and none of the parties involved had authorization to speak.

Google headquarters its New York operations at 111 8th Ave., where it currently occupies about 650,000 square feet. It purchased the property early last year for nearly $2 billion. The company wanted control so that it could grow into the property's nearly three million square feet of space over time. Executing that strategy, however, has been more difficult than it may have initially expected, however.

Several tenants at the property, including Nike, have refused buyout offers to leave their space early. Other tenants, such as the advertising firm Deutsch Inc., have opted to exercise renewal rights in their leases that will allow them to tack on several years to their occupancy. Deutsch, for instance, has the option to extend its lease by five years and asked Google to pay it $20 million, according to sources not to use it and relocate elsewhere. Google refused the offer and has instead expanded at Chelsea Market.

jd3189 Dec 12, 2012 4:26 AM

For those who are not familiar with the appearance of this building.


http://www.doobybrain.com/wp-content...Eighth-Ave.jpg

http://www.doobybrain.com/wp-content...Eighth-Ave.jpg

CarlosV Dec 12, 2012 10:37 PM

I know that building it is MASSIVE!!!!!

Tyler Xyroadia Dec 13, 2012 12:29 PM

Hmm I do indeed hope Google is a good Steweard for the building...
111 Eighth Avenue is a WONDERFUL Artdeco monster.

Who on earth would imagine them wanting to tear it down?

bnk Dec 13, 2012 5:07 PM

Looks like a fair price based on this 2010 article. I don't think the building was really worth 2.9B at the time but 1.9 seems right.

Quote:


http://articles.nydailynews.com/2010...tment-partners

Google reportedly to pay four fold increase on $2.9 billion 111 Eighth Avenue building



BY NICOLE CARTER

DAILY NEWS STAFF WRITER

Wednesday, October 27, 2010


Google is apparently ogling Chelsea's 111 Eighth Ave. building ... for a mind-blowing $2.9 billion.

The company is reportedly close to dropping the megabucks for the 18-story behemoth, which is priced at four times what it sold for 12 years ago, reports said Wednesday.

In 1998, the building was bought by a group led by Taconic Investment Partners, who paid only $387 million for 111 Eighth and three other buildings, reported the New York Times in September, when the building hit the market.


If Google shells out the cash, they will be paying a fourfold increase - even more, considering that Taconic bought in as part of a package deal. When the building went on the market this year, experts predicted that if the building actually fetched $2 billion, it would be a silver lining in tough economic times.

...

Google reportedly already rents 550,000 square feet of space in the building. Because the building is equipped for high-tech businesses, other interested buyers are plenty and include foreign sheiks and wealthy locals, the Observer reports.


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