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>"As part of the deal, we’ve retained Taconic Management Company to continue the leasing oversight services and management of the building on our behalf" The b

by phlux 16y ago

>"As part of the deal, we’ve retained Taconic Management Company to continue the leasing oversight services and management of the building on our behalf" The building cost ~1.9 BILLION -- may be one of the most expensive real-estate deals yet.

kqr2 16y ago
Google is estimated to have about $33 billion in cash (maybe $31 billion now). Google manages its money like a private hedge fund. Considering currency fluctuations, real estate is often considered a good hedge against inflation so it may seem like a smart move in the future. http://www.silobreaker.com/google-net-cash-reserves-up-70-pct-in-past-five-years-estimated-at-33-billion-5_2263906143229181979 http://www.silobreaker.com/google-net-cash-reserves-up-70-pc... http://www.fool.com/investing/general/2010/06/07/google-the-hedge-fund.aspx http://www.fool.com/investing/general/2010/06/07/google-the-...
jonprins 16y ago
Not really. Tishman Speyer Properties and Black Rock Realty jointly bought Stuyvesent Town and Peter Cooper Village (two very large, sprawling apartment complexes in Manhattan) for over $5bn, back in '06. Of course, they had to give it up in January because things didn't work out quite like they expected (rent controlled apartments don't give up the ghost easily; they'd wanted to turn them into high-class ibanker condos). Source: http://www.theatlanticwire.com/opinions/view/opinion/Americas-Most-Expensive-Real-Estate-Deal-Goes-Bust-2293 http://www.theatlanticwire.com/opinions/view/opinion/America...
- gatsby 16y ago
  I don't think Tishman's Stuyvesent and PCV purchases were similar to Google's purchase at all. Tishman purchased these properties to generate cash flow from single tenants and as potential development opportunities. Very different from Google's RE strategy. Regardless of short-term fluctuations, Google's NY building will likely be a wise investment because it's a long-term play and they're not dependent on the cash flow that Tishman required to cover their monthly costs. Google will save millions on annual leases, the property will probably continue to appreciate in value over time, and they can write off massive amounts for building depreciation over the next couple decades.

by phlux 16y ago

kqr2 16y ago

Google is estimated to have about $33 billion in cash (maybe $31 billion now). Google manages its money like a private hedge fund. Considering currency fluctuations, real estate is often considered a good hedge against inflation so it may seem like a smart move in the future. http://www.silobreaker.com/google-net-cash-reserves-up-70-pct-in-past-five-years-estimated-at-33-billion-5_2263906143229181979 http://www.silobreaker.com/google-net-cash-reserves-up-70-pc... http://www.fool.com/investing/general/2010/06/07/google-the-hedge-fund.aspx http://www.fool.com/investing/general/2010/06/07/google-the-...

jonprins 16y ago

Not really. Tishman Speyer Properties and Black Rock Realty jointly bought Stuyvesent Town and Peter Cooper Village (two very large, sprawling apartment complexes in Manhattan) for over $5bn, back in '06. Of course, they had to give it up in January because things didn't work out quite like they expected (rent controlled apartments don't give up the ghost easily; they'd wanted to turn them into high-class ibanker condos). Source: http://www.theatlanticwire.com/opinions/view/opinion/Americas-Most-Expensive-Real-Estate-Deal-Goes-Bust-2293 http://www.theatlanticwire.com/opinions/view/opinion/America...

gatsby 16y ago
I don't think Tishman's Stuyvesent and PCV purchases were similar to Google's purchase at all. Tishman purchased these properties to generate cash flow from single tenants and as potential development opportunities. Very different from Google's RE strategy. Regardless of short-term fluctuations, Google's NY building will likely be a wise investment because it's a long-term play and they're not dependent on the cash flow that Tishman required to cover their monthly costs. Google will save millions on annual leases, the property will probably continue to appreciate in value over time, and they can write off massive amounts for building depreciation over the next couple decades.