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Google Reported to Be Discussing $2B Acquisition of Chelsea Market

Tech Giant Already Owns HQ Building at Adjacent 111 8th Avenue
February 6, 2018
Google is reportedly in talks to acquire Chelsea Market for more than $2 billion according to a report published Tuesday by The Real Deal citing undisclosed sources.

Matt Bronfman, CEO of Atlanta-based Jamestown, Chelsea Market’s current landlord, would neither confirm nor deny to CoStar News that Google will buy Chelsea Market.

Situated at 75 9th Avenue between 15th and 16th streets, the nine-story property spans 1.2 million square feet, which includes a 225,000-square-foot food hall on the ground floor and lower level.

Jamestown paid $410 million ($675 per square foot) in 2011 to developer Irwin Cohen and fellow partners Angelo Gordon & Co. and Belvedere Capital Real Estate Partners in order to assume full ownership of the property. The 50% stake acquired valued the total asset at $810 million at that time.

Angelo, Gordon had previously sold Jamestown a 75% interest stake in Chelsea Market in 2003 for $285 million, or $316.67 per square foot.

Google’s interest in the property is unclear. The tech conglomerate is said to be leasing 400,000 square feet on the upper floors of Chelsea Market. But a number of tenants have leases with terms stretching past 2020, according to CoStar research. These include the digital content arm of the MLB and the General Services Administration. Of 66 tenants in the building that CoStar tracks, nearly half signed leases in 2016, although the majority of those leases involved food hall tenants.

Eastdil Secured was the listing broker in Google’s purchase of its 2.9 million-square foot headquarters at 111 8th Ave. in December 2010 for $1.77 billion ($605.77 per square foot). The 18-story Class-A office building sits adjacent to Chelsea Market.

Eastdil Secure was also the listing broker representing Chelsea Market during Jamestown’s interest restructuring and eventual acquisition of the asset, according to CoStar records.

Google could not be immediately reached for comment. Eastdil Secured could not immediately provide comment.

CoStar Atlanta Reporter Tony Wilbert contributed to this news report.
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