Landmark Dividend’s $122M Landmark Acquisition
- Apr 16, 2020
Landmark Dividend LLC, of El Segundo, Calif., has acquired a data center campus at 4010 N. Third St. in Phoenix. The terms of the transaction were not disclosed, but according to documents obtained by Commercial Property Executive, the sale price was $122 million and the seller was PayPal Inc. The online payment company retains a lease on a portion of the property and up to 6.77 MW of power for up to eight years.
Landmark’s purchase of the 184,000-square-foot, 16-plus MW enterprise data center campus marks its expansion into the turnkey data center sphere. The facility is fortified with a storage warehouse and is designed for Tier IV compliance, offering full redundancy across its entire infrastructure, while providing access to more than 10 carrier networks onsite.
The campus consists of three data center buildings completed between 2010 and 2014, along with a Tier IV office area, and currently has an immediate availability of up to 9 MW of capacity.
Landmark has partnered with BCS, a Dallas-based critical facilities operations company, which will handle facility management, security, janitorial and IT services solutions. The JLL Data Center Solutions team in Phoenix is the facility’s exclusive leasing agent.
Active acquisitions, price compression
The Phoenix acquisition is the 16th data center asset acquired by Landmark’s Digital Infrastructure Division in the last 18 months. Just since 2018, Landmark has bought data centers in eastern Washington, southern Virginia, Boston, Minneapolis, Charlotte, N.C., Indianapolis, Fort Lauderdale, Fla., Dayton, Ohio, St. Louis, Silicon Valley, Dallas, Columbus, Ohio, Milwaukee and Omaha, Neb., according to the company’s website.
The U.S. data center market remains strong, with 349.6 MW of absorption in 2019, as data center REITs outperform office and retail properties, JLL reported in March. As prices compressed in markets across the country, the report noted: “This trend is driven by more providers entering the markets, large megawatt deals executed at lower rates and robust supply pipelines.”