BYTEGRID Buys Massive Data Center in Downtown Cleveland, Secures $100M Credit Facility
- Jun 11, 2013
BYTEGRID, a privately held data center company headquartered in Northern Virginia, has acquired the Cleveland Technology Center (CTC), Cleveland’s market leader in secured telecommunications and data center facilities. The price of the transaction was not disclosed.
The Cleveland Technology Center is located at 1425 Rockwell Ave., in the city’s “Health-Tech Corridor.” It encompasses 333,215 square feet of highly secure data center space and sits on top of one of the largest fiber point of presence (POP) sites in the state. The property is supported by redundant 20 MVA power feeders from two separate utility substations, with access to additional capacity.
According to BYTEGRID, the CTC is now 53 percent occupied by a variety of Internet and communications service providers and government agencies. The property’s previous owners made significant investments to upgrade the facility and turn it into one of Cleveland’s top data center locations, and so will BYTEGRID. The company plans to turn 30,000 square feet of vacant space into enterprise-class, mission-critical data center space with more than 4 megawatts of power capacity.
“Cleveland is a perfect match for BYTEGRID’s national expansion strategy focused on unleashing data center capacity in underserved areas of major markets,” said Kenneth Parent, CEO of BYTEGRID, in a statement for the press. “Vibrant business expansion and investment, along with market-changing development projects, is taking place all around Cleveland’s CBD and Midtown Health-Tech Corridor. BYTEGRID plans to further improve and expand the CTC, making it the primary provider of capacity and connectivity in Cleveland, as well as an ideal disaster recovery location for Midwest and East Coast markets such as Chicago and New York.”
The new acquisition doubled the company’s footprint. BYTEGRID now operates three data centers with more than 625,000 square feet of wholesale data center space. The other two are located in Alpharetta, Ga., and Silver Spring, Md. And the company is looking to expand.
On June 3rd, it announced an initial $25 million revolving credit facility that includes an accordion feature allowing BYTEGRID to increase the size of the revolving credit facility to as much as $100 million. KeyBank Real Estate Capital arranged the funding. It will support the company’s plan to buy more properties this year.
BYTEGRID’s national expansion strategy focuses on increasing data center capacity in underserved markets. It chose Cleveland due to key attributes such as low-cost power, no personal property taxes, increasing local demand for compliant-grade data center space and its strategic location, serving the Ohio corridor and bisecting major business centers Chicago and New York.
Photo credits: ByteGrid