1547 acquires four new facilities with Harrison St
fifteenfortyseven Critical Systems Realty – aka 1547 – has acquired four new facilities for an undisclosed sum from one its JV partners, CIM Group.
Located in Chicago, Illinois, Orangeburg, New York and Cheyenne, Wyoming, the portfolio of facilities is comprised of more than 560,000 square feet, with space for expansion. The four facilities were previously owned by CIM Group and 1547 and the two still own facilities together in San Francisco and Toronto.
The newly acquired assets will be managed by 1547 and co-owned by its JV partner Harrison Street.
CEO and MD of 1547, J. Todd Raymond, said the transaction means 1547 is " poised to kick off an aggressive build-out plan" with new capacity scheduled to come online in New York and Chicago in early 2022.
He added: “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
The transaction follows Harrison Street and 1547’s acquisitions of the historic Wells Building, a carrier hotel and data centre in Milwaukee, Wisconsin, and the Pittock Block building, a carrier hotel, colocation data centre and office building in downtown Portland, Oregon.
“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, MD and head of digital real estate at Harrison Street.
“We are thrilled to expand our portfolio with 1547, a leading data centre operator, which now encompasses six premier assets in five US markets. Chicago and New York are strategic markets with strong demand from cloud, content, healthcare and financial services given the proximity to dense population centres. 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 centre market that benefits from low power costs and strong economic incentives,” Hochanadel added.