TA Realty LLC, a real estate private equity firm which is a subsidiary of Mitsubishi Estate, today announced plans to develop a new $1.8bn, 300-megawatt data center campus in Leesburg, Virginia, part of Loudoun County. Further, TA Realty has structured a data center fund in which Mitsubishi Estate and Tokyo Century will jointly invest in the data center campus development project. Specifically, Mitsubishi Estate and Tokyo Century will participate in two out of the development’s seven total buildings.

Data Center Development – TA Realty, Mitsubishi Estate, Tokyo Century

TA Realty’s new data center campus will be situated on a 6.3 million sqft land plot. The site is located on the east side of Sycolin Road and bound by Cochran Mill Road to the north and Energy Park Drive to the south in Leesburg, Virginia. Once fully built-out, the campus will offer seven buildings, comprising 1.5+ million sqft of space with 300 megawatts of power capacity, from a dedicated on-site substation.

Initial Build-Out

The land where TA Realty’s project is being developed is shovel-ready and positioned atop major fiber routes. Specifically, the site’s initial two buildings will comprise 100 megawatts of power capacity across 548k sqft of space. The initial two buildings will follow the below timeline:

  • Building 1: start of construction by the end of 2021, with completion set for May 2023
  • Building 2: start of construction in 2022, with completion set for February 2024

Customers

TA Realty’s data center Campus will serve the needs of hyperscale companies and cloud service providers.

Land Acquisition – TA Realty

TA Realty paid a total of $87m, equivalent to ~$600k per acre for the land in Loudoun County’s Leesburg, Virginia.

Acquisition from Jack O’Donnell

TA Realty purchased its first site on March 30, 2021, through its entity Nova 1 Owner LLC for $60m. The seller was NV Real Estate Two, LLC, an entity backed by local businessman Jack O’Donnell. Overall, the site spans 94.9 acres (4.1 million sqft), equating to a valuation of $632k per acre. Notably, O’Donnell purchased the site in July 2017 for $6.5m.

Acquisition from Stonewall Creek

TA Realty purchased its second site on March 30, 2021, through its entity Nova 1 Owner LLC for $27m. The seller was Stonewall Creek LLC, an entity backed by John Andrews. Overall, the site spans 50.2 acres (2.2 million sqft), equating to a valuation of $538k per acre. Notably, Andrews purchased the site in December 2013 for $2.3m.

TA Realty – Overview

Since inception, TA Realty has managed $30bn+ of real estate assets through core, core-plus, and value-add strategies. Additionally, today’s announcement of a $1.8bn data center campus marks the firm’s entry into data center sector.

Mary Zhang covers Data Centers for Dgtl Infra, including Equinix (NASDAQ: EQIX), Digital Realty (NYSE: DLR), CyrusOne (NASDAQ: CONE), and CoreSite Realty (NYSE: COR). Within Data Centers, Mary focuses on the sub-sectors of hyperscale, enterprise / colocation, cloud service providers, and edge computing.

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