Joint Venture Acquires 10-Acre Site in NoVA’s Data Center Alley for $21.5M
A joint venture between American Real Estate Partners (AREP) and Chicago investor Harrison Street has acquired a 10.3-acre site at 21445 Beaumeade Circle in Ashburn, Va.’s Data Center Alley for $21.5 million.
The seller was not disclosed, but public records revealed Chirisa Investments had last acquired the property in 2018.
The new owners plan to construct a two-story, 265,000-square-foot powered shell for data center use on the site, with construction expected to start this summer.
“Demand for data centers far outstrips current capacity and recent construction is nearly 100 percent absorbed,” Doug Fleit, AREP’s CEO, said in a statement. “21455 Beaumeade Circle’s main location will enable AREP to meet this critical demand and furthers our investment strategy to develop assets that expand data availability and connectivity.”
The site is situated in one of the largest and fastest-growing data center markets in the U.S., with Northern Virginia having recorded 500 megawatts of data center leasing over the last year, just about doubling the record set in 2018. Around the country, data center developers are scrambling to add capacity to keep up with the demand.
“Our newest site at Beaumeade has all of the elements data center users are seeking with its extraordinary location and access to power and fiber,” Fleit said. “This project can be delivered on a fast-track basis, which the market certainly needs.”
The property is located near data centers for both Equinix and RagingWire, and adjacent to major new campuses for Equinix and Amazon Web Services.
“AREP with its successful track record and deep local connections is an ideal partner for Harrison Street, and we look forward to working with AREP to capitalize on the significant data center demand in Ashburn,” Michael Hochanadel, Harrison Street’s head of digital real estate, said.