JV Acquires 1 MSF Data Center Portfolio
- Sep 06, 2018
A joint venture between Lincoln Rackhouse and Principal Real Estate Investors has acquired a data center portfolio totaling one million square feet throughout facilities in Dallas, Phoenix and Kansas City, Mo.
The portfolio includes 1000 Coit Road in Plano, a two-story asset offering 454,421 square feet on 23.8 acres; 11155 NW Airworld Drive in Kansas City, a two-building campus offering 259,111 square feet on nearly 17 acres; and 2500 W. Fry in Phoenix, a 191,061-square-foot data center and on-site substation on 24.4 acres. With power capacity, the Plano facility has 8MW available to lease, which can be expanded to 16MW. The availability includes 60,000 square feet of raised-floor space and an expansion capability of 125,000 square feet. The Kansas City facility has 10MW of power capacity and 100,000 square feet of raised-floor space available for occupancy.
“This acquisition doubles our portfolio and allows us to offer cloud, colocation and managed services providers attractive expansion or new entry options into these key data center markets,” said Ryan Sullivan, managing director of Lincoln Rackhouse, in a prepared statement. “We were able to acquire this portfolio because we were patient, flexible and have a proven track record of performance with the seller.”
In addition to the acquisition, the partners have signed a master lease with INAP, a cloud and colocation provider, which occupies Phoenix’s entire 10MW of power capacity and substation with redundant 21.6MW utility transformers. The entire portfolio has undergone $200 million in upgrades over the last few years by the seller, who was represented by CBRE. The buyers are planning to put additional funds into upgrading and retrofitting the facilities for multi-tenant use.
In June, a joint venture between Principal Real Estate Investors and Panattoni Development Co. broke ground on a 232,000-square-foot industrial development on the border of Placentia and Anaheim, Calif.
Image courtesy of Lincoln Rackhouse