Google closes on $2.4 billion Chelsea Market purchase in NYC

Google spent $2.4 billion to purchase the nearly 1.2 million square foot Manhattan complex in a deal finalized Tuesday

Google spent $2.4 billion to purchase the nearly 1.2 million square foot Manhattan complex in a deal finalized Tuesday

The $2.4 billion sale of New York's Chelsea Market to Alphabet Inc's Google closed on Tuesday in a deal that will expand the company's presence in the city's technology corridor along the Hudson River. The technology titan now already occupies significant space in the 1.2 million square-foot complex located at 75 Ninth Ave. More than 500,000 visitors come to its ground-floor food hall, which also contains a variety of shops.

The deal highlights NY as a hub for innovation and an incubator for young technology companies, said Michael Phillips, president of Jamestown. That property, which houses Google's headquarters, is across from Chelsea Market. "It's a combination of identifying underutilized locations, creative and visionary repositioning, value-creating management, rigorous financial analysis and patience". Now they can relax, according to Google and the building's seller, Jamestown LP.

Jamestown purchased a controlling stake in Chelsea Market in 2003, as was widely reported at the time.

Cushman & Wakefield's Douglas Harmon, Adam Spies, and Kevin Donner represented Jamestown in the deal.

It already has offices in the Chelsea Market building - built in 1913 by architect Albert G. Zimmerman as a factory for the Nabisco biscuit company - which serve as offices for the Google-owned online company Youtube. Jamestown has worked with Google on several community projects, such as a computer lab for the Robert Fulton housing project, it said in its statement.

Redevelopment of the Chelsea Market property began in 1995 when real estate investor Irwin Cohen purchased the site with intention to create a space for the city's flower district.

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