Google Closes On $2.4 Billion Deal To Buy Chelsea Market
NEW YORK (CBSNewYork/AP) — Google Inc. has finalized its $2.4 billion purchase of the Chelsea Market building.
Management company Jamestown Properties announced the sale of the former Nabisco factory on Tuesday.
The building sits directly across from Google's New York City headquarters.
Google employs about 7,000 people in New York, the most of any location outside its Silicon Valley headquarters.
Vice President for real estate David Radcliffe said the Chelsea Market deal "further solidifies" the company's commitment to New York.
More: Google Expansion Plans Help New York's Claim As 'Silicon Valley East'
The Google expansion comes as other tech companies, including Amazon, Facebook and Spotify, also grow in the city. In addition to considering New York among the 20 finalists for its new eastern U.S. headquarters, Amazon recently signed a deal to bring 2,000 employees to a building, formerly occupied by The Associated Press, on Manhattan's far west side.
New York has been pitching itself as an alternative to Silicon Valley for years. And while tech many never rival financial services and Wall Street as the most important private-sector employer and economic driver in New York, it has established a legitimate footprint that goes beyond a few big-name companies.
A report by state Comptroller Thomas DiNapoli found that New York City had 7,600 tech firms in 2016, an increase of 23 percent since 2010. The report found that the average salary for tech employees in the city was $147,300.
Google and Jamestown Properties say they will ensure a smooth transition with minimal impact on tenants, including Major League Baseball and the Food Network.
Jamestown will continue to manage the market's popular food hall, which draws millions of visitors each year.
(© Copyright 2018 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)