In a deal that's reportedly valued at over $1.8 billion, Google now owns an entire New York City block with the latest acquisition of 111 Eighth Avenue. The deal for the 2.9 million square foot property is the biggest transaction for a single building in the U.S. this year according to a Wall Street Journal article. Google currently occupies roughly 500,000 square feet of space in the building, and won the bid for the purchase of the property due in part to its willingness to close the deal by the end of the year. The building, which once housed the headquarters of the Port Authority of New York and New Jersey, was being marketed by Douglas Harmon, a senior managing director at Eastdil Secured. The building last changed hands in 1998.
"You can't get a stronger vote of confidence for the strength of the New York office market," Dan Fasulo, managing director of Real Capital Analytics, told Bloomberg. "When one of the most prestigious modern corporations makes a bet on your marketplace, it's not just a bet on your real estate, but in New York as a place to retain and attract the best talent."
"They can afford to pay more for this building because they're already the occupant," said Ben Thypin, Real Capital senior market analyst. "A third party that wasn't already a tenant might not have been able, actually definitely wasn't able, to bid as high as they were."
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