Google's $1.9B NYC Buy is Priciest 2010 Building Purchase


In typical Google (NASDAQ:GOOG) fashion, the tech behemoth has reportedly acquired the 2.9-million-square-foot property that houses its New York City offices, marking the most expensive building purchase in the U.S. this year.

According to The Wall Street Journal, Google signed a contract to buy the 111 Eighth Ave. property for $1.9 billion. Located in Manhattan’s Chelsea neighborhood, it is popular with tenants like Nike (NYSE:NKE), WebMD (NASDAQ:WBMD) and the Lifetime cable channel.

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Google, which is headquartered in Mountain View, Calif., occupies about 500,000 square feet in the building, the paper reported.

The deal could still fall apart, but that is seen as unlikely because the contract is binding and Google has paid a large deposit, the Journal reported.

The property had been the headquarters of the Port Authority of New York and New Jersey and was sold by a group that includes the New York State Common Retirement Fund and real-estate investment company Jamestown.

Google’s stock didn’t appear to be influenced by the real-estate buy, easing 0.2% to $571.00. The company’s shares have been hurt in recent days by a European Commission investigation and reports of a possible acquisition of Groupon.