ProLogis is one of the nation's largest industrial REITs, controlling 1,664 distribution facilities worldwide. ProLogis' portfolio includes 185.2-million sf of distribution facilities owned, managed or under development.

"Historically, customers located in industrial settings have had few choices for Internet access, often sacrificing speed due to high cost," says Dan Ankeny, president and CEO of Carlsbad, CA.-based PhatPipe. "We believe the market for broadband sales within the under served US industrial sector is approximately $11 billion, while the potential represented by the portfolios of our committed partners is nearly $300 million. Obviously, there is a tremendous opportunity to further penetrate this sizable market."

Under the agreement, ProLogis will invest $8 million in PhatPipe preferred stock, representing an equity position of 19.85% upon closing. In addition, ProLogis will receive $8 million in PhatPipe preferred stock, representing another 19.85% ownership interest.