Silverpeak, Legacy, Oaktree Acquire Ohio Data Centers

CLEVELAND AND CINCINNATI, OH—New York-based Silverpeak and Legacy Investing, in partnership with funds managed by Oaktree Capital Management, have acquired a portfolio of office, industrial and data center campuses in Cleveland and Cincinnati in a partial office space sale-leaseback transaction with PNC Bank.

The transaction introduces financial grade, turn-key, Tier III data centers to the Cincinnati and Cleveland markets, which historically have not been available for lease. Totaling 70,000 square feet of leasable raised floor space and 6.7MW of immediately-available N + 1 power capacity, the data centers are designed to handle high performance computing and feature 42” raised floors, liquid- cooled cabinets, and access to all major fiber providers.

“We are pleased to invest alongside Legacy and Oaktree in a sector where there is growing demand for high quality space,” says Brad Lebovitz, managing director at Silverpeak. “The addition of these assets not only expands our sector presence, but also introduces us to edge markets where we see limited supply.”

“With this closing, we now have over 32MW under ownership, with current inventory in multiple markets, including Cincinnati, Cleveland and Northern Virginia,” says Jay Rappaport, CEO of Legacy. “We are very proud to be adding the Cleveland and Cincinnati data centers, which were purpose built by a large financial institution as their primary data centers with over $60 million invested in each facility. These are ideal facilities to support cloud and managed service providers as well as financial, government, healthcare and life science companies.”

In the last twelve months, Silverpeak and Legacy have invested in more than 540,000 square feet and 24MW of power capacity across five data center facilities, all of which have significant, investment-grade anchor tenants.