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Silver Peak partnership acquires Cleveland and Cincinnati data centers

28 Feb 2019
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Silver Peak and Legacy Investing, LLC in partnership with funds managed by Oaktree Capital Management, L.P. (“Oaktree”) have thrown down a substantial investment.

The transaction involves the acquisition of a portfolio of office, industrial and data center campuses in Cleveland and Cincinnati in a partial office space sale-leaseback transaction with PNC Bank, N.A.

According to Silver Peak managing director Brad Lebovitz, the acquisition will introduce financial grade, turn-key, Tier III data centers to the Cincinnati and Cleveland markets, which historically have not been available for lease.

The data centers in aggregate make up for 70,000 square feet of leasable raised floor space and 6.7MW of immediately-available N + 1 power capacity. Lebovitz asserts they have been designed to handle high-performance computing and feature 42” raised floors, liquid-cooled cabinets, and access to all major fiber providers.

“We are pleased to invest alongside Legacy and Oaktree in a sector where there is growing demand for high quality space,” says Lebovitz.

“The addition of these assets not only expands our sector presence, but also introduces us to edge markets where we see limited supply.”

Legacy CEO Jay Rappaport says in the last 12 months alone the duo have invested in more than 540,000 square feet and 24MW of power capacity across five data center facilities, all of which have significant investment-grade anchor tenants.

“With this closing, we now have over 32MW under ownership, with current inventory in multiple markets, including Cincinnati, Cleveland and Northern Virginia,” says Rappaport.

“We are very proud to be adding the Cleveland and Cincinnati data centers, which were purpose built by a large financial institution as their primary data centers with over $60 million invested in each facility. These are ideal facilities to support cloud and managed service providers as well as financial, government, healthcare and life science companies.”