By Mark Reilly – Managing Editor, Minneapolis / St. Paul Business Journal
Sep 25, 2018, 7:31am CDT
A Chaska data center has sold for $77 million to an investment partnership that's buying up similar properties around the country.
Finance & Commerce reports on the deal for the Minneapolis I data center at at 1708 Creek Lane W, which was acquired by an affiliate of New York-based Next Tier HD. The seller was Dallas-based Stream Data Centers, which built the 75,675-square-foot facility in 2013 during a spate of data-center construction in the Twin Cities.
Stream also built a second, smaller data center called Minneapolis II in Chaska; that one is being used by U.S. Bank.
Data center vacancy rates in the Twin Cities are running at over 30 percent, F&C notes, but they can still be desirable deals for long-term buyers and for tax reasons.
Next Tier earlier this year teamed up with real estate investor AGC Equity to buy up data centers around the U.S. Data Center Knowledge has more details on that effort.