In partnership with Chicago-based investor Harrison Street, AREP paid $21.5M for a ten.3-acre website in Ashburn and plans to construct a two-story, 265K SF “powered shell” knowledge middle. Powered shell websites are data centers that come outfitted with energy and connectivity however with interiors left naked.
Courtesy of American Actual Property Companions
A rendering of AREP’s deliberate Ashburn, Virginia, knowledge middle
The deal is a big one for AREP, which is angling to increase within the red-hot knowledge middle market. Building on the brand new Ashburn website, situated at 21445 Beaumeade Circle, is scheduled to start later this 12 months.
“Our latest website at Beaumeade has all the components knowledge middle customers are searching for with its extraordinary location and entry to energy and fiber. This mission might be delivered on a quick observe foundation, which market definitely wants,” AREP CEO Doug Fleit mentioned in a press launch.
Ashburn sits on the coronary heart of Data Center Alley, probably the most lively knowledge middle area on the earth for its proximity to vital infrastructure in addition to main knowledge middle prospects, such because the federal authorities. Demand for area within the space is still riding high, with knowledge middle developments rising denser and taller as land grows extra scarce.
AREP is a longtime participant within the Ashburn market, having additionally acquired Quantum Park, a 1.8M SF workplace park that features the 445K SF headquarters of the U.S. Customs and Border Patrol Company. AREP presently manages 9M SF of complete belongings.
AREP does not intend for this knowledge middle deal to be the one of its form.
“We now have different alternatives deliberate within the knowledge middle and connectivity sector, which has grow to be a big a part of our long run technique, and anticipate to make different bulletins within the very close to future,” Fleit mentioned in an announcement emailed to Bisnow.