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So they’re paying above average, which was my point.

ceejayoz 9y ago
That's a really silly response. They're paying 4% above average (and that's the 2016 average - prices may be higher in 2018). The average likely includes a range far greater than 4% depending on the properties involved. Google is clearly not paying anything remotely describable as "shockingly high".
- eric_h 9y ago
  It's roughly the same price they paid for 111 8th Ave.
- downandout 9y ago
  I’ll get more downvotes for this, but 4% when billions are involved is a shocking amount of money. In this case, that’s roughly $80 million - enough for Eric Schmidt to buy another G650.
  - ceejayoz 9y ago
    The same link I posted said the average increased 7% YOY. If that kept up in 2017, Google just paid below average. But hey, maybe you're a better negotiator than Google's team of real estate experts and lawyers. $80M probably isn't even a shocking number to a company who made $12,660M profit last year. Keep digging that hole, though.
  - dang 9y ago
    > I’ll get more downvotes for this Please edit bits like that out of your comments here, since they break the site guidelines. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html
ryanwaggoner 9y ago
If the average is $1500, then a number of transactions have been above average, so this isn't that unusual. There are a lot of reasons you might pay 5-10% above average: location, building quality and condition, how much deferred maintenance there is, historical or architectural significance, etc, etc.
- raiyu 9y ago
  An average is just that, meaning prices below and above. Chelsea is a much more desired neighborhood than midtown, which is one of the least desired neighborhoods. So a 5-10% premium for Chelsea is actually on the low side, and isn't really a premium for the area as that sounds to be right on target compared to the average price. If they paid $2,000 a sq ft then they would be paying a premium. This looks like a good standard rate for also an iconic building in Chelsea.
virgilp 9y ago
Oh, come on. Shockingly high?
CydeWeys 9y ago
Chelsea Market is an above-average property, though. It's in an excellent location, one block away from the A/C/E/L lines, two blocks away from the 1/2/3 lines, and three blocks away from the F/M lines. The market on the ground floor is an internationally known tourist destination, and the High Line, another huge internationally known tourist destination, actually goes through the building on the second floor by 10th Ave. And Chelsea/Meatpacking are desirable and pricey neighborhoods in general.
- nerpderp83 9y ago
  And Google cash costs Google less than other people's.
make3 9y ago
not much at all, as there would be a cost to moving everything elsewhere, which gives incentive to pay more & the seller knew this

That's a really silly response. They're paying 4% above average (and that's the 2016 average - prices may be higher in 2018). The average likely includes a range far greater than 4% depending on the properties involved. Google is clearly not paying anything remotely describable as "shockingly high".

eric_h 9y ago
It's roughly the same price they paid for 111 8th Ave.
downandout 9y ago
I’ll get more downvotes for this, but 4% when billions are involved is a shocking amount of money. In this case, that’s roughly $80 million - enough for Eric Schmidt to buy another G650.
- ceejayoz 9y ago
  The same link I posted said the average increased 7% YOY. If that kept up in 2017, Google just paid below average. But hey, maybe you're a better negotiator than Google's team of real estate experts and lawyers. $80M probably isn't even a shocking number to a company who made $12,660M profit last year. Keep digging that hole, though.
- dang 9y ago
  > I’ll get more downvotes for this Please edit bits like that out of your comments here, since they break the site guidelines. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html

ryanwaggoner 9y ago

If the average is $1500, then a number of transactions have been above average, so this isn't that unusual. There are a lot of reasons you might pay 5-10% above average: location, building quality and condition, how much deferred maintenance there is, historical or architectural significance, etc, etc.

raiyu 9y ago
An average is just that, meaning prices below and above. Chelsea is a much more desired neighborhood than midtown, which is one of the least desired neighborhoods. So a 5-10% premium for Chelsea is actually on the low side, and isn't really a premium for the area as that sounds to be right on target compared to the average price. If they paid $2,000 a sq ft then they would be paying a premium. This looks like a good standard rate for also an iconic building in Chelsea.

virgilp 9y ago

Oh, come on. Shockingly high?

CydeWeys 9y ago

Chelsea Market is an above-average property, though. It's in an excellent location, one block away from the A/C/E/L lines, two blocks away from the 1/2/3 lines, and three blocks away from the F/M lines. The market on the ground floor is an internationally known tourist destination, and the High Line, another huge internationally known tourist destination, actually goes through the building on the second floor by 10th Ave. And Chelsea/Meatpacking are desirable and pricey neighborhoods in general.

nerpderp83 9y ago
And Google cash costs Google less than other people's.

make3 9y ago

not much at all, as there would be a cost to moving everything elsewhere, which gives incentive to pay more & the seller knew this