Chelsea Market plans international outposts as Google closes on $2.4B purchase of flagship building
Photo courtesy of Jamestown
Jamestown, the real estate investment company that just closed on the $2.4 billion sale of the 1.2 million-square-foot Chelsea Market building to Google yesterday, is getting in on the corporate game. The developer will continue to manage Chelsea Market and, according to the Wall Street Journal, they maintained the branding rights and intellectual property connected to the Chelsea Market name outside of Manhattan. The article reports that Jamestown is already scoping out “emerging neighborhoods” throughout the U.S. and Europe and hopes to announce one to two new locations for their new concept before the end of the year. Phillips told the Journal, “The concept travels…Our intention is to create this community of buildings.”
With the rising popularity of co-working spaces and the changing definition of retail and corporate development, Jamestown plans to develop workspaces that incorporate retail and lifestyle concepts. This frantic amenities race is an attempt to attract and retain the younger market who value experiences over possessions.
Phillips said, “We’re creating communities with amusement parks on the roofs and music venues and underground speakeasies to help people get dates.” Literally, their Ponce City Market property in Atlanta has an amusement park on its roof. Skyline includes games and rides ranging in price from $1-$3, including Derby Race, Basketball, Skee Ball, Ring Toss, High Striker, Three-Story Slide, and Heege Tower.
This $2.4 billion sale is the second biggest single sale in the city’s history, following the $2.8 billion purchase of the GM Building in 2007. In terms of what this sale means to Google and its surrounding neighborhood, Google already occupies a large chunk of the 1.2 million-square-foot complex with their roughly 7,000 employees, along with Food Network, Major League Baseball, Oxygen Media and TimeWarner. With this purchase, the tech giant’s already large presence in the neighborhood gets even more dominant. Google bought 111 Eighth Avenue, its current headquarters, from Jamestown in 2010. It is also currently the biggest tenant at 75 Ninth Avenue.
David Radcliffe, Google’s vice president of real estate and workplace services, said in a blog post Tuesday, “This purchase further solidifies our commitment to New York, and we believe the Manhattan Chelsea Market will continue to be a great home for us and a vital part of the neighborhood and community.”
Six million people visit Chelsea Market every year.
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