Harrison Street, a private equity firm, through a joint venture with fifteenfortyseven Critical Systems Realty (1547 CSR), a developer and operator of data centers, today announced an acquisition from CIM Group, of four data centers, located in the three U.S. markets of Chicago, Illinois; Orangeburg, New York; and Cheyenne, Wyoming. Specifically, this data center portfolio comprises up to 60 megawatts of potential power capacity and 560k+ sqft of space, which is stabilized and nearly fully-leased.
Post-acquisition, 1547 CSR will manage the portfolio of data centers and oversee any development projects to expand the facilities. Notably, 1547 CSR previously managed the facilities on behalf of CIM Group, the seller.
Data Center Portfolio – Harrison Street Buys from CIM Group
Harrison Street and 1547 CSR’s new data centers include two facilities in Chicago, one in Orangeburg, and one in Cheyenne. Below is a breakdown of the data centers which together comprise up to 60 megawatts of potential power capacity and 560k+ sqft.
|Data Center||City||State||Megawatts||Square Feet|
|Midway Technology Center||Chicago||Illinois||26||230k|
|725 South Wells Street||Chicago||Illinois||5||60k|
|1 Ramland Road||Orangeburg||New York||24||232k|
|340 Progress Circle||Cheyenne||Wyoming||5||38k|
The joint venture anticipates having new capacity online in New York and Chicago in early 2022. Indeed, this plan seeks to capture strong demand in Chicago and New York from cloud, content, healthcare, and financial services customers.
Midway Technology Center (MTC) – Chicago, Illinois – CHIL1
CHIL1 is the Midway Technology Center located at 40 E. Garfield Blvd, in the Washington Park neighborhood of Chicago. Phase I of this data center has 10 megawatts of planned capacity, with a total of 26 megawatts reserved at the site – providing expansion potential. Overall, the facility has 52k sqft of raised floor space in the 230k sqft building.
Both CHIL1 and CHIL2 (see below) offer connectivity into 350 East Cermak, which is Digital Realty’s interconnection hub for the Chicago/Midwest market.
725 South Wells Street – Chicago, Illinois – CHIL2
CHIL2 is a colocation data center located at 725 South Wells Street, in Chicago’s business district (South Loop). This 9-story facility comprises 5 megawatts of power capacity across 60k sqft.
CHIL2 is situated on Chicago’s “Fiber Ring” giving the facility access to 15+ different fiber carriers. For example, these on-site carriers include AT&T, Cogent Communications, Crown Castle, Lumen Technologies, and Verizon.
1 Ramland Road – Orangeburg, New York – ORNY1
ORNY1 is a colocation facility located in Orangeburg, New York, which is 18 miles from Manhattan, New York City. Presently, this facility has 6 megawatts of power capacity available, which is expandable/provisioned to 24 megawatts. Overall, the facility has 180k sqft of data center space in the 232k sqft building and resides on 23 acres of land.
In terms of connectivity, the Orangeburg, New York data center provides competitive, low-latency connectivity to the New York and New Jersey markets. For example, the site has access to Digital Realty’s interconnection hubs at 60 Hudson Street and 111 8th Avenue.
340 Progress Circle – Cheyenne, Wyoming – CHWY1
CHWY1 is a 1-story facility on a 20-acre site located ~90 miles north of the city of Cheyenne, Wyoming. This facility comprises 5 megawatts of power capacity across 38k sqft, with space for 800 cabinets. CHWY1 is fully-leased to a single-tenant, which is a national virtual infrastructure and IT services firm.
Importantly, this Cheyenne, Wyoming data center has access to four diverse fiber paths on a 100 gigabit per second network, which offers high-speed connectivity to Denver, Colorado. Particularly, the facility’s on-site carriers include Charter Communications, Lumen Technologies, and Zayo.
Finally, Wyoming’s data center market benefits from low power costs, efficiency (CHWY1’s target PUE of 1.14), and economic incentives.
Harrison Street and 1547 CSR – Joint Venture
Harrison Street’s overall joint venture with 1547 CSR currently encompasses six data centers in five U.S. markets. Beyond the data center portfolio acquired from CIM Group, Harrison Street and 1547 CSR own and operate:
- Pittock Block (PTOR1): acquired this 302k sqft carrier hotel and colocation data center in Portland, Oregon for $326m
- Wells Building (MIWI1): acquired this 160k sqft carrier hotel and colocation data center in Milwaukee, Wisconsin
To date, Harrison Street has invested ~$1.8bn in digital infrastructure including powered shells, carrier hotels, and dark fiber.
CIM Group – Data Centers
CIM Group will continue to own data centers in San Francisco, California and Toronto, Ontario in-partnership with 1547 CSR. Additionally, CIM Group has made equity commitments to Novva Data Centers, a wholesale data center developer and operator, who is developing hyperscale facilities in West Jordan, a suburb of Salt Lake City, Utah and Colorado Springs, Colorado.