Google’s next big revenue model? New York City landlord. The search engine just posted on its own blog that it has today sealed the reported >$1.8 billion dollar deal to purchase 111 Eighth Avenue in Chelsea, where it already occupies 50,000 square feet. As part of the deal, Google will be leasing out the building to continuing and new tenants.
“Today, we’re pleased to announce that we’ve closed a deal with the partnership of Taconic Investment Partners, Jamestown Properties and the New York State Common Retirement Fund to purchase 111 Eighth Avenue (also known as 76 Ninth Avenue).
As part of the deal, we’ve retained Taconic Management Company to continue the leasing oversight services and management of the building on our behalf, providing the same level of customer service the building’s tenants have come to expect. We believe that this is a great real estate investment in a thriving neighborhood and a fantastic city.”
Google also reports that over 2000 Googlers currently work in the building and that the company plans on hiring more to fill up the massive space — At 15 stories and 2.9 million square feet, 111 Chelsea (also known as 76 Ninth Avenue) is New York City’s fourth largest office building.
Google provides search and advertising services, which together aim to organize and monetize the world’s information. In addition to its dominant search engine, it offers a plethora of online tools and platforms including: Gmail, Maps, YouTube, and Google+, the company’s extension into the social space. Most of its Web-based products are free, funded by Google’s highly integrated online advertising platforms AdWords and AdSense. Google promotes the idea that advertising should be highly targeted and relevant to users thus providing...