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OAKLAND, CA-Data center operator and developer 365 Main Inc. has acquired a 110,000-sf facility near Jack London Square here with equity partner Rockwood Capital. The parties involved declined to disclose the purchase price, but local industry sources tell GlobeSt.com it came in around $20 million. The transaction closed earlier this week.
Located at 720 Second Ave., roughly 30% of the building is leased. Metro PCS Wireless Inc. and T-Mobile USA already have datacenter operations in the building. 365 Main, which recently filled out its flagship facility at 365 Main St. in San Francisco, is upgrading the power, cooling, connectivity and security up to its standards and then will lease up the vacant space. The first 15,000 sf of raised-floor space will be available in March or April. Eventually, the facility will have 80,000 sf of raised floor area.
"The demand for high-quality data center space in the San Francisco Bay Area is the greatest in the country," says Chris Dolan, CEO of 365 Main. "Expanding to Oakland fits all our criteria: existing demand, existing tenants, good location, well-defined pipeline. It's a strategic move that makes sense for our business… ."
Tier 1 Research of Mountain View, CA ranks Northern California as one of the nation's tightest markets for high-end data center space. Data center in the region are 70% to 80% full, according to the company's research.
In Southern California, 365 Main is developing a center from the ground up in Vernon after filling up its six-month-old facility in El Segundo. The company chose Vernon because the city maintains its own electric utility and provides power for as much as 40% less than other locations in the region.
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