Sunday, December 5, 2010

Google offers to buy 111 8th Avenue for $1.9billion

This has a $500mm pari passu senior split up between GCCFC 2004-GG1, GSMS 2004-GG2, MSC 2004-IQ7, MSC 2005-HQ5, and GMACC 2004-C2. It was appraised at $800mm in '04. Current debt matures in April 2014 and carries a 5.78% coupon. It is not clear if they're assuming the debt or working out some new financing. Based on YE '09 numbers that represents a 4.1% cap rate (I realize the WSJ quoted some odd "yield" at the bottom, but I don't know what they're talking about - they don't either)

The WSJ reports:

Google occupies about 500,000 square feet in the building and earlier this fall was reported to be a front-runner in the bidding for the property. The company won partly because it knew the building well and was willing to close the deal before the end of the year, according to people familiar with the matter. While the deal could still fall apart, that is unlikely because the contract is binding and Google has put down a large deposit, these people said.

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