NEW YORK CITY-One of Manhattan’s largest office buildings, 111 Eighth Ave., has been sold by a partnership of Taconic Investment Partners, Jamestown Properties and the New York State Common Retirement Fund to Google Inc. The terms and amount of the sale were undisclosed, however, sources say that the deal was around $1.8 billion.
“When we purchased the building 12 years ago, we recognized the remarkable potential that 111 Eighth Ave. offered--the opportunity to transform a building that occupies an entire city block with an incredible infrastructure into a class A office building that would elevate Chelsea into an attractive commercial office alternative to Midtown,” says Paul Pariser, co-chief executive officer of Taconic Investment Partners.
As part of the deal, Google has retained Taconic Management Co., a subsidiary of Taconic Investment Partners, to continue the leasing oversight services and management of the building on its behalf, providing the same level of customer service the building’s tenants have come to expect.
When 111 Eighth was acquired in January 1998, Taconic and its partners commenced a $68-million base-building renovation, overhauling vertical transportation, the lobbies, common corridors, power plants and delivery systems, transforming the asset into a leading, first-class office building. Taconic has led the building’s development, management and leasing efforts, replacing the original back-office and warehouse-type tenants with a variety of first-class tenants in media, advertising, fashion and technology. Today, 111 Eighth is the New York headquarters not only for Google, but also for Web MD, Nike, Deutsche Advertising, Lifetime TV and Armani AX.
Google first came to 111 Eighth Ave. in 2006 and has expanded significantly; they are the largest tenant in the building with more than 2,000 people employed within Chelsea. “Google was attracted to the unique features of the building, including the full-block floorplates, the 14.5-foot ceiling heights, the views, the easy access to transportation and the building’s technology offering,” Pariser tells GlobeSt.com. “This purchase represents the opportunity to continue the storied history of 111 Eighth Ave.--the building is in the hands of an owner with the vision and capital to continue the property’s leading role in Chelsea and the Manhattan commercial market.”
The sellers were represented by Doug Harmon of Eastdil Secured, while Howard Shapiro of Greenberg Taurig served as the legal counsel. Google was represented by CB Richard Ellis’ Stephen Siegel, William Shanahan and Darcy Stacom, and Robert Sorin of Fried Frank acted as Google’s legal counsel.
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