Skift Take
This is really just a real estate deal, but Google is set to take over the building that houses New York's Chelsea Market. Ironically, the building is home to the Food Network, too.
— Kristen Hawley
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.
Chelsea Market is known for its first-floor food hall, which attracts about 6 million visitors annually, according to its website. The property’s upstairs space is used by tenants including cable television’s Food Network, the New York 1 news channel and Major League Baseball Network. The High Line elevated park runs by the building.
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.
Calls to a representative for Google and to Thomas Sandlin, a spokesman for Jamestown, weren’t immediately returned.
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.
–With assistance from Mark Bergen
©2018 Bloomberg L.P.
This article was written by David M. Levitt from Bloomberg and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to [email protected].
