AREP Acquires 10-Acre Site to Build New Data Center to Meet Market Demand

HERNDON, VA – Real estate leader  American Real Estate Partners (AREP) in partnership with Chicago-based investor Harrison Street has acquired a 10.3 acre-site in the heart of Northern Virginia’s Data Center Alley, the world’s largest and most active data center market. AREP plans to construct a two-story 265,000 SF powered shell for data center use on the site at 21445 Beaumeade Circle in Ashburn, VA. Construction is scheduled to begin later this year.

“Demand for data centers far outstrips current capacity and recent construction is nearly 100 percent absorbed. 21455 Beaumeade Circle’s main and main location will enable AREP to meet this critical demand and furthers our investment strategy to develop assets that expand data availability and connectivity,” said AREP CEO Doug Fleit. “We are excited to work with Harrison Street as we seek well located investments to stay ahead of and meet the market’s needs.

AREP’s latest acquisition follows a string of high-profile successes in the Ashburn market that includes the 1.8 million SF acquisition of Quantum Park and the development of a 445,000 SF headquarters for the US. Customs and Border Patrol Agency.

Build-to-suit developments are rising in frequency as large requirements enter the market so that many of the world’s premier hyperscalers like Amazon, Microsoft, Google and Facebook can meet the demand for their customer’s cloud computing and from continued growth of the internet through advances in artificial intelligence, self driving cars, augmented reality and 5G.

“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.” said Michael Hochanadel, Head of Digital Real Estate at Harrison Street.

“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. This project can be delivered on a fast track basis, which market certainly needs.” said Doug Fleit.

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ABOUT AMERICAN REAL ESTATE PARTNERS (AREP)
Headquartered in the greater Washington metropolitan area, AREP is an institutional fund manager, and operating partner focused on office and mixed-use repositioning and development throughout the Greater Mid-Atlantic Region.

Since its founding in 2003, the Company has acquired over $4.2B across targeted geographies, comprising more than 17M SQFT of class-A real estate assets. AREP currently manages over 10 million square feet of assets.

AREP’s vertically integrated real estate platform provides expertise in all ownership disciplines including asset management, acquisitions, property management, leasing and market research, construction management, development, and engineering. AREP creates value through distinctive and dynamic placemaking and in-depth relationships with brokers that drive leasing performance. https://americanrepartners.com

ABOUT HARRISON STREET
Harrison Street is one of the leading investment management firms exclusively focused on alternative real assets. Since inception in 2005, the firm has created a series of differentiated investment solutions focused on demographic-driven, needs-based assets.

The firm has invested across senior housing, student housing, healthcare delivery, life sciences and storage real estate as well as social and utility infrastructure. Headquartered in Chicago with an office in London, the firm has more than 190-employees and approximately $32 billion in assets under management. Clients of the firm include a global institutional investor base domiciled in North America, Europe, Middle East, Asia and Latin America.

Harrison Street has been awarded Best Places to Work by Pensions & Investments for the last seven consecutive years and was named 2019 North American Alternatives Investor of the Year by PERE. For more information, please visit www.harrisonst.com.

Media Contacts:
AREP
Liz Wainger,
301-461-3780
liz@waingergroup.com

Norma Kelly
818-509-3142
Norma@waingergroup.com