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Landmark Dividend Buys PayPal’s Phoenix Data Center in $122M Deal

| Commercial Real Estate News, Deals, Leasing, Technology| Views: 0

Landmark Dividend announced its 16th data center acquisition in the last 18 months — a 184,000-square-foot, 16+ MW enterprise data center campus located in Encanto Village, the district just north of downtown Phoenix. PayPal, the seller of the campus, occupies more than 50% of the campus at Third Street and Indian School Road and will remain on site as a tenant. The sale reportedly closed for $122 million.

The property includes three data center buildings and an office area, all of which were constructed between 2010 and 2014, with roof capacity loads of up to 1.4 million pounds. It was designed for Tier IV compliance and also includes a storage warehouse and offers full redundancy across its entire infrastructure, while providing access to more than 10 carrier networks on-site.

According to the Landmark Dividend press release announcing the acquisition, the facility also has an immediate lease opportunity of up to 9 MW of available space and power, with power usage effectiveness ratios (PUEs) as low as 1.15. The JLL Data Center Solutions team in Phoenix is the exclusive leasing manager of the data center campus.

BCS, a Dallas-based critical facilities operations company, is Landmark Dividend’s exclusive partner. The company offers best-in-class service-level guarantees and handles facility management, security, and janitorial and IT services solutions.

Ryan Sullivan, senior vice president of Landmark’s Digital Infrastructure division, said, “The new Phoenix data center campus, with its significant capabilities, represents a new era for our team, and we look forward to supporting turnkey data center requirements in a market where data demands continue to expand rapidly.”

He added, “As an experienced data center and real estate company, we understand the sophisticated needs of buyers in the era of converged infrastructure, and we’re now better positioned to seamlessly meet those needs. This expansion into the turnkey data center sphere means that ready-to-go companies can immediately gain access to a move-in-ready facility that is tier-rated for high-density applications. The Landmark and BCS critical facility operations partnership has shown it can save enterprise data center users 15% to 25% in operating costs annually, and these opportunities and advantages continue to be backed by Landmark’s industry-leading platform and management team.”

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