Flexential completes sale and leaseback of its biggest data centre

08 April 2021 | Antony Savvas

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Flexential has entered into a sale and leaseback transaction with Legacy Investing for the development of its upcoming Hillsboro 3 data centre near Portland, Oregon - its biggest facility yet.

The deal, said Flexential, will help it to continue to invest in its core data centre operations, while providing Legacy the opportunity to invest in and own the site, core and shell of the next Flexential facility in Hillsboro.

Hillsboro 3 will enhance Flexential's position as a leader in the growing Portland data centre market, which has the second-highest growth rate in North America according to CBRE's North American Data Center Trends Report.

Flexential broke ground on Hillsboro 3 last autumn. It will total 358,000 sq ft and support 36MW of capacity over four separate halls. It will be powered entirely by renewable energy.

Chris Downie, CEO of Flexential, said: “The completion of this facility will cement Flexential as a clear leader in this rapidly growing market and the enthusiastic support of Legacy and its investment partner, Invesco Real Estate [a global real estate investment manager], speak to the value of the Flexential brand and its Hillsboro franchise.”

Jay Rappaport, CEO of Legacy Investing, added: “Flexential's already-dominant position in Hillsboro and the overwhelming demand for their offerings in this market made partnering with them a clear choice for us. We look forward to seeing this ultra-modern data centre come to life.”

Kristina Metzger, the leader of CBRE Data Center Capital Markets, served as lead advisor to Flexential in the transaction, and Paige Morgan of CBRE's Portland office provided local support.

Flexential recently added 3MW of power and 20,000 sq ft of floor space to its Alpharetta data centre in Georgia. Flexential operates 3 million sq ft of data centre space across 20 US markets and in November confirmed it would add 3MW of power and 20,000 sqf of floor space to its Alpharetta data centre in Georgia.