The New York Post reported late last night that Google (GOOG) decided to plunk down $1.8 billion and purchase an entire city block in Manhattan located at 111 8th Avenue. The buy marks the largest commercial real estate purchase by any tenant ever. The company was already renting out 550,000 square feet in the building and has gone ahead to pick up all 3 million square feet.
With Google kicking around over $33 billion in cash on its balance sheet, the buy shows a renewed desire to invest in potentially higher-yielding assets. This real estate investment follows recent news from DealBook that Google may acquire Groupon for an estimated $6 billion. Perhaps large technology names rich with cash are starting to see values and will start seeing their cash balances no longer as smart cushions but as underutilized assets.
Brandon R. Rowley
“Chance favors the prepared mind.”
*DISCLOSURE: Nothing relevant.
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