Google Buys New York’s Chelsea Market For $2.4 billion

The search giant and world’s second most valuable company by market capitalisation pulled out $2.4 billion to buy New York’s famous Chelsea Market. The deal started earlier this year but was just concluded with the seller “Jamestown” a real estate investment and management company based in Atlanta and Cologne, Germany.

In 2010, Google had paid $1.7 billion for the building facing the market which has 275,000 square meters of office floor space which is at 111 Eighth Ave and was bought from Jamestown real estate firm. And in 1913, they acquired an office in the Chelsea Market building which was built by Architect Albert G. Zimmerman, which serves as an office for the Google-owned online Company YouTube.

Google already occupied a large space of the 1.2 million-square-foot complex, which is best known for its ground floor hall filled with restaurants and shops that are visited by a half million New Yorkers and tourists from all over the world.

The real estate transaction between Google and Jamestown is the most expensive transaction ever done in the New York’s History.  In 2003 the building was sold to Jamestown for $280 million, after 15 years its value has increased in eightfold.

David Radcliffe, Google’s vice president of real estate and workplace services, said in a blog post that “This purchase further solidifies our commitment to New York, and we believe the Manhattan Chelsea Market will continue to be a great home for us and a vital part of the neighbourhood and community,”

Google’s expansion comes at the same time Amazon is considering where to place its second headquarters, with an expected workforce of 50,000 and New York is among the 20 finalists cities in Amazon’s selection process.