Hard-to-replicate assets in high barrier-to-entry markets are nearly fully leased and comprise over 560,000 SF
CHICAGO – November 2, 2021 – fifteenfortyseven Critical Systems Realty, LLC (“1547”), a leading owner, developer, and operator of data centers, and Harrison Street, one of the leading investment management firms exclusively focused on alternative real assets, pursuing its digital strategy, today announced the acquisition of four strategically located data centers in Chicago, Illinois, Orangeburg, New York and Cheyenne, Wyoming.
The portfolio is comprised of more than 560,000 square feet of turn-key datacenter, support and tech-enabled office space that benefits from strong fiber connectivity and significant value creation opportunities through expansion potential. The Orangeburg colocation facility is purpose-built and located only 18 miles from New York City providing ultra-low latency for connectivity-oriented customers. In Chicago, 725 Wells Street is a highly connected colocation data center in the South Loop, while the historic Midway Technology Center provides significant expansion potential strategically located in close proximity to dense long haul fiber. The Cheyenne Data Center is fully leased to a national virtual infrastructure and IT services firm. 1547 will manage the assets.
“We are excited to expand our partnership with Harrison Street with these four assets and to continue to have the opportunity to manage and develop them through their next stage of growth”, stated J. Todd Raymond, CEO and Managing Director of 1547. “With this ownership transition and a shared vision, we are poised to kick off an aggressive build-out plan and anticipate having new capacity online in New York and Chicago in early 2022.”
“This transaction is consistent with Harrison Street’s digital strategy of acquiring high quality, mission critical assets in attractive markets with high barriers to entry,” said Michael Hochanadel, Managing Director and Head of Digital Real Estate at Harrison Street. “We are thrilled to expand our portfolio with 1547, a leading data center operator, which now encompasses six premier assets in five U.S. markets. Chicago and New York are strategic markets with strong demand from cloud, content, healthcare and financial services given the proximity to dense population centers. For users seeking deployments in these markets, these assets provide strategic connectivity options based on their dense fiber networks. Cheyenne, Wyoming is a growing data center market that benefits from low power costs and strong economic incentives.”
Harrison Street has a dedicated team committed to investing across digital verticals that are key parts of the digital ecosystem and create operational synergies with end users. To date, the firm has invested approximately $1.8 billion in digital assets including powered shells, carrier hotels, strategic colocations and dark fiber. This transaction follows Harrison Street and 1547’s acquisitions of the historic Wells Building, a carrier hotel and data center in Milwaukee, Wisconsin, and the Pittock Block building, a carrier hotel, colocation data center and office building in downtown Portland, Oregon,
About fifteenfortyseven Critical Systems Realty, LLC
fifteenfortyseven Critical Systems Realty (“1547”) is a leading developer and operator of custom-designed data centers with over 1,300,000 SF of data center space in Orangeburg, NY | Toronto, ON | Chicago, IL (2) | Cheyenne, WY | San Francisco, CA | Kapolei, HI | Milwaukee, WI and Portland, OR. Central to the Company’s strategy is its ability to uncover the true intrinsic value of properties and opportunistically develop world-class data center facilities. 1547’s focus is on providing tenants with strategic, customized mission critical solutions from concept through completion. For more information, please visit www.1547Realty.com.
About Harrison Street
Harrison Street is one of the leading investment management firms exclusively focused on alternative real assets. Since inception in 2005, the firm has created a series of differentiated investment solutions focused on demographic-driven, needs-based assets. The firm has invested across senior housing, student housing, healthcare delivery, life sciences and storage real estate as well as social and utility infrastructure. Headquartered in Chicago with offices in San Francisco, London and Toronto, the firm has more than 200-employees and approximately $39 billion in assets under management. Clients of the firm include a global institutional investor base domiciled in North America, Europe, Middle East, Asia and Latin America. Harrison Street has been awarded Best Places to Work by Pensions & Investments for the last seven consecutive years and was named 2020 Global Alternatives Investor of the Year by PERE. For more information, please visit www.harrisonst.com.