Manhattan, New York City – NNN Commercial Real Estate news is reporting from New York City on a tremendous Commercial Property purchase by Google. Yes, Google has pulled the trigger and acquired Manhattan’s 111 Eighth Avenue commercial property. This Investment Property is one of New York City’s largest office buildings. The Commercial real estate property, 111 Eighth Avenue has been sold by a partnership of Taconic Investment Partners, Jamestown Properties and the New York State Common Retirement Fund. The Commercial Real Estate Buyer, Google Inc. has not disclosed terms yet many NNN commercial real estate analysts say that the transaction was around $1.77 – $1.8 billion.
Commercial Real Estate Deals
This is New York City’s largest commercial real estate deal in the Country which was not an entire Investment Property Portfolio. This Investment Property consists of 2.9 million square-feet and is the Google company’s New York City headquarters. As part of the commercial real estate transaction, it is said that Google will retain Taconic Management Company to continue the leasing oversight services and management of the Investment Property. Taconic Management Company is a subsidiary of Taconic Investment Partners, which provides an excellent level of customer service to the Tenants at this nnn commercial real estate.
Use the 1031 Exchange
Taconic and partners purchased the prestigious Office Building 12 years ago. This high tech Office Building was originally developed in 1932 as the headquarters for the Port Authority of New York. The Joint Venture (JV) had added $68 million to the Investment Property to upgrade the structure. This type of commercial real estate transaction should prompt a 1031 Exchange. The Investment Property anchors the Chelsea and Meatpacking District neighborhoods,and has become the premier office location for high profile tenants. Many Tenants who net leased at this Investment Property are in advertising, fashion, media and technology industries. Google started a net lease on the Commercial Property, 111 Eighth Avenue in 2006. Google expanded it’s net lease as Tenant and is now the largest occupant in the Investment Property. Some more Tenants leasing include Armani AX, Deutsche Advertising, Lifetime TV, Nike and WebMD. WebMD has developed over the years and keeps their space at this Commercial Real Estate Property, as its headquarters.
Some areas are struggling with their commercial real estate market, especially for development and expansion. However, the powerful Google will maintain control of any expansion needed on the east coast. We saw some other large commercial real estate transactions recently that include SL Green Realty’s purchase of 125 Park Ave. for $330 million, and Boston Properties’ purchase of the Investment Property, 510 Madison Ave. in a $275 million deal. Also we wanted to report TIAA-CREF’s purchase of 685 Third Avenue for $190 million.
The Sellers of this commercial real estate saw the potential that 111 Eighth Ave. offered. As it was an Investment Property that occupies an entire city block with an incredible infrastructure. This Class A Investment Property would take the Chelsea area to compete as an alternative to Midtown’s commercial real estate market. Google recognized these unique features of the Investment Property such as the full-block floorplates, the 14.5-foot ceiling heights, the unbelievable views, and the easy access to transportation. This Investment Property has something else all gigantic Search Engine Companies need and that is the building’s technology offerings. The Investment Property, 111 Eighth Avenue is very well equipped for any Tech Business. The Commercial Property, 111 Eighth Avenue, was a former Port Authority of New York and New Jersey industrial property. So this Investment Property comes equipped for high-tech businesses with plenty of backup generators, electrical power and fiber optics for tenants.
Triple Net Lease Properties and Commercial Property are available for acquisition. Also for commercial real estate investors in a 1031 exchange, can Contact us for purchase or disposition.
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