Google's latest New York City property — Chelsea Market — used to house the National Biscuit Company whose invention ended up inspiring the name of the Alphabet-owned firm's operating system 105 years after being introduced. The Oreo creator that's also known as Nabisco has been in the Manhattan building since the late 1890s until 1959 when it ended up moving to the suburbs due to logistical issues, leaving Chelsea Market largely unused up to the final decade of the last century when one Irwin B. Cohen bought it and redeveloped the property into a more contemporary office building that once again opened its doors in 1997. Whereas Google is now understood to be acquiring Chelsea Market for $2.4 billion, Mr. Cohen obtained the foreclosed mortgage debt on the property for "only" $10 million in 1990.
The investor who ended up redeveloping the building on his own sold stakes in Chelsea Market to Belvedere Capital Real Estate Partners and Angelo Gordon & Co. in 1999, in addition to selling another one to Jamestown Properties four years later. Jamestown emerged as the property's sole owner in 2011 after buying out the other three stakeholders, at which point Google has already been the building's tenant for three years. The Mountain View, California-based tech giant has been increasing the size of the space it leased with every new contract, especially after 2010 when it purchased its New York headquarters at 75 Ninth Avenue, right across the street in the southwestern part of Manhattan.
Today, Chelsea Market hosts a number of valuable businesses such as Time Warner, Major League Baseball, The Food Network, and Oxygen Media. The building will cost Google $600 million more than its New York headquarters did, though it's presently unclear what exactly is the company planning to do with it. The restaurants and stores found within its falls are all expected to continue operating for the time being, though the existing leases on office space are unlikely to be extended once they run out, according to previous reports. Google presently occupies approximately 400,000 square feet of Chelsea Market, which amounts to a third of the building. The acquisition of the property is just the beginning of the company's 2018 efforts to expand its physical footprint, with the firm already announcing plans to develop and redevelop properties across nine states over the course of this year.