< Back to 68k.news US front page

Google to buy Manhattan's St. John's Terminal for $2.1B

Original source (on modern site) | Article images: [1]

Google will buy Manhattan's St. John's Terminal for $2.1 billion in New York's largest real estate deal since the onset of the pandemic.

The search giant announced on Tuesday that it intends to buy the Hudson Square property, which will serve as the anchor of its new Hudson Square campus. Its decision to buy the building expands on its plans to spend more than $250 million this year on its presence in New York.

Google currently leases St. John's Terminal, a 12-story building at 550 Washington St., and the company expects to open its location there by mid-2023. The deal for the property will officially close during the first quarter of 2022, and Google is buying it from Oxford Properties and Canada Pension Plan Investment Board.

Oxford announced in the fall of 2018 that it would construct a new 1.3 million-square-foot office building at the site, a strong departure from earlier expectations that development in the area would focus mainly on residential space. Google closed the final deal to lease the building in July 2019.

The purchase represents a major sign of confidence in New York's office market, which has been struggling since the onset of the pandemic as many companies switch to remote work. Google itself recently pushed back its return-to-office plan, saying it will be optional for employees to work on campus until at least Jan. 10 due to continued uncertainty around the pandemic. However, the company said in its St. John's Terminal announcement that working together in person will remain an important part of its plans going forward.

August was a relatively strong month for Manhattan's office market, as companies leased about 2.5 million square feet of space for the busiest month since January 2020, before the pandemic hit, according to data from Colliers. Firms leased about 508,000 square feet of space that month in Midtown South.

St. John's Terminal is just the latest Manhattan acquisition for Google, which has scooped up several marquee properties in the borough in recent years. The search giant purchased Chelsea Market in 2018 for $2.4 billion, and it bought the Milk Building at 450 W. 15th St. in 2019 for about $592 million. It owns 111 Eighth Ave. as well, which it bought in 2010 for about $1.8 billion.

Google's Hudson Square campus will span 1.7 million square feet overall and include space at 315 Hudson St. and 345 Hudson St. in addition to St. John's Terminal. Its space at both Hudson Street buildings is complete, and it will occupy about 320,000 square feet of space at Pier 57 as well. The company employs 12,000 employees in New York, its largest presence outside of California.

"New York's energy, creativity and world-class talent are what keep us rooted here and why we're deepening our commitment with plans to purchase St. John's Terminal," Google CFO Ruth Porat said in a statement. "We look forward to continuing to grow along with this remarkable, diverse city."

< Back to 68k.news US front page