IRVING, TX-On the surface, the 620,000-square-foot Regent Commons might not appear to be a "data center" type of asset. Developed by KDC in 2006, the three-building office asset is home to State Farm Insurance and Citigroup Inc.
But to GI Partners of Menlo Park, CA, the asset was perfect for its DataCore LP fund. As a result, DataCore LP now owns the asset, which it acquired from Brookfield Asset Management's Real Estate Opportunity Fund II. The transaction was publicized earlier this week.
DataCore was launched in 2012 by the California State Teachers' Retirement System to acquire and hold technology-based and technology advantaged real estate in the United States. Regent Commons, at 3950-4050 Regent Blvd., has the ideal profile. "When you look at the two tenants in terms of leases, it's a core investment," explains Todd Blanding, vice president of GI Partners. "And when you look at the power redundancies, back-up mechanical systems and raised for environment, it was unique from a technology standpoint. It fits within our mandate very well."
The buy comes just weeks after Texas Bill 1223, which allows tax exemptions for data centerownership, came into effect. Blanding says, however, that the bill and its effect wasn't necessarily the driving factor behind this particular buy. "When you see the government working with businesses, it helps promote demand, which ultimately goes toward appreciation of real estate values," he tells GlobeSt.com. "But that bill was more of a macro consideration we threw into our analysis."
Stream Realty Partners LP is managing the complex. The deal was brokered through Cushman & Wakefield of Texas Inc.
Regent Commons is the DataCore Fund's third buy this year – it already owns Lightwave Corporate Center in San Diego and Corporate Research Center in Hayward, CA. Blanding says the fund has an East Coast property under contract. "We're actively working with best-and-final offers on other properties across the country," he says, adding that the fund is a long-term asset holder.
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