CalSTERS, GI Partners Fund Acquires San Diego Data Center

DataCore, a fund co-founded earlier this year by CalSTERS and GI Partners, has acquired a two-story data center and office building in a submarket of San Diego.

DataCore, L.P. a fund co-founded earlier this year by CalSTERS and GI Partners, a middle-market private equity firm, has acquired a two-story data center and office building in a submarket of San Diego.

The investment was made through DataCore, a real estate fund managed by GI Partners that was launched earlier this year with the California State Teachers’ Retirement System.

“We are pleased to have formed this relationship with CalSTRS that leverages our expertise and strong reputation for investing in technology-advantaged properties,” said Rick Magnuson, GI Partners’ executive managing director. “This property represents DataCore’s initial acquisition, features extensive data center improvements and is leased to strong tenants in their respective fields.”

The two-story 166,892-square-foot-property is located at 9305 Lightwave Ave., in the Kearny Mesa submarket of San Diego.

The building is currently 100 percent leased to American Internet Services, an enterprise-class data center, cloud, connectivity and managed services company, and San Diego Gas & Electric Co., a public utility that provides energy service to 3.4 million people through 1.4 million electric meters and 850,000 natural gas meters in San Diego and southern Orange counties.

The property was the first investment for the DataCore fund, which was created by CalSTRS as a core investment vehicle to invest in technology-focused real estate in the U.S., including data centers, internet gateways, corporate campuses for technology tenants and life science properties located in primary MSAs and leased to industry leading tenants.

“We have an active pipeline and we will continue to identify and acquire core technology real estate investments on behalf of DataCore,” Magnuson said.

CalSTRS is a limited partner in GI Partners Fund II and III and, earlier this year, GI Partners advised CalSTRS on its acquisition of LCOR, a fully integrated investment, management and development company, focused on large-scale multi-family, commercial, and mixed-use properties.

The California State Teachers’ Retirement System, with a portfolio valued at $154.8 billion as of October 31, 2012, is the largest educator-only pension fund in the world.

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