CoreSite Realty has acquired a two story, 283,000 square-foot building (NY2) in Secaucus, New Jersey for $18.4 million.
Data center operator CoreSite Realty announced on Tuesday it has acquired a two story, 283,000 square-foot building (NY2) in Secaucus, New Jersey for $18.4 million.
The company plans to convert the building to a data center according to an announcement by commercial real estate services provider HFF.
NY2 will provide customers with up to 18 MW of capacity and the flexibility to grow with market demand.
CoreSite says it expects to invest a total of $65 million to acquire the data center, develop the powered shell, and complete the initial phase of development which will comprise of 65,000 square feet of leasable space.
The data center is expected to open to the public by the end of the fourth quarter of 2013.
The colocation provider currently operates 14 data centers in nine major US markets, which includes CoreSite Realty’s Santa Clara campus which is currently being expanded. CoreSite is also in the midst of building a new data center in Greenfield, Virginia.
Earlier this year, CoreSite Realty restructured its debt financing, increasing its credit line from $225 million to $355 million, and changing it from secured to unsecured.
“We were also pleased to execute upon our first preferred stock offering and recast our line of credit, creating the liquidity to fund our near-term growth objectives,” said CoreSite CEO Tom Ray. “Related, to date in 2013, we acquired a land site to support the development of our NY2 data center in the New York region. We continue to be encouraged by CoreSite’s growth opportunities and our vertical sales and marketing model is gaining momentum. Further, we believe that our platform is increasingly well-positioned to serve performance-sensitive applications and enable our customers to scale their businesses and increase profitability.”
Talk back: Are you currently offering data center space in the New Jersey area? Are you currently a tenant at a CoreSite Realty data center? Do you think this new Secaucus is a strong acquisition? Let us know in the comments.
About Justin Lee
Justin Lee has been a staff analyst with theWHIR since 2004. He writes about a range of web hosting and IT-related issues facing the industry on the WHIR website, as well the print version of the WHIR magazine. Follow him on Twitter @Justin_theWHIR.
