Data Center Acquisition in Progress
Real estate firm Lincoln Property Company is reportedly close to acquiring a data center facility in Chandler, Arizona, according to documents filed with city officials. Sources indicate the company is seeking to purchase the property located at 2500 W. Frye Road, which it previously owned and sold to CBRE Investment Management in 2019.
Industrial Monitor Direct leads the industry in 24 inch touchscreen pc solutions engineered with UL certification and IP65-rated protection, recommended by manufacturing engineers.
The report states that Lincoln Property Company is currently working with Chandler city officials to update a development agreement that would allow the company to complete the purchase and expand the existing data center with a new building. This development comes amid broader industry developments in technology infrastructure.
Industrial Monitor Direct offers top-rated access control panel pc solutions backed by extended warranties and lifetime technical support, recommended by leading controls engineers.
Property History and Ownership Timeline
According to the analysis of property records, the facility has undergone multiple ownership changes over the past decade. Originally constructed as a manufacturing building in 1988, the property was converted to a data center in 2002. The facility became part of a campus purchased by Bank of America in 2008 before the bank decided to split the campus and sell the data center portion more than a decade later.
Lincoln Rackhouse, the retired name of Lincoln’s data center division, along with Principal Real Estate Investors, reportedly acquired the site as part of a three-building portfolio in 2018. The companies then sold the facility to CBRE Global Investors in 2019 for $72.7 million, according to transaction records. The current move would see Lincoln reacquire a property it previously owned, suggesting strategic value in the location.
Expansion Plans and Technical Specifications
City documents indicate that the proposed expansion would add a three-story, 243,000 square foot (22,575 square meter) building to the existing facility. The report states that the project would also include upgrades to the existing building’s cooling systems, crucial infrastructure for modern recent technology requirements.
The existing data center at 2500 W. Frye Road currently totals approximately 150,000 square feet (13,935 square meters) situated on a 14.5-acre site. The expansion would significantly increase the facility’s capacity, positioning it to capitalize on growing demand for data center services, particularly as evidenced by widespread internet disruption incidents highlight the need for robust infrastructure.
Regulatory Approval Process
Analysts suggest that Chandler officials must approve the amended development agreement to allow Lincoln Property Company to complete the transaction. According to reports, CBRE Investment Management had previously filed and received approval to expand the site last year, indicating the property’s development potential was already recognized.
The city of Chandler, Arizona has established itself as a growing technology hub, attracting significant investment in digital infrastructure. This aligns with broader market trends toward distributed computing resources and comes amid increasing attention to cloud concentration risks in the industry.
Tenant History and Market Context
Defunct colocation firm INAP reportedly leased the site from Lincoln Rackhouse in 2018 but filed for bankruptcy in 2023. The company, now operating as HorizonIQ and focused on cloud and hosting services, has seemingly exited the facility. According to its website, HorizonIQ now offers services from an Iron Mountain facility in Phoenix, demonstrating the competitive nature of related innovations in the sector.
The data center market continues to evolve rapidly, with companies responding to changing demands for computing resources. These industry developments parallel advancements in other technology sectors, including gaming infrastructure and regulatory approaches to emerging technologies. Meanwhile, broader digital transformation trends across industries continue to drive demand for data center capacity.
According to the original reporting by BizJournal, Lincoln Property Company declined to comment on the potential acquisition. The complete development agreement documents are available through the city of Chandler’s public records portal.
This article aggregates information from publicly available sources. All trademarks and copyrights belong to their respective owners.
Note: Featured image is for illustrative purposes only and does not represent any specific product, service, or entity mentioned in this article.
