Cleveland Data Center gets acquired by StratCap

Strategic Datasphere, LLC, StratCap's institutional data center real estate investment platform, has completed the acquisition of a 187,000 square foot facility in Cleveland, Ohio, including a high-density data center, banking operations center, and flex/R&D space. Cleveland has experienced an upsurge of interest from local and regional corporations wishing to outsource their data center presence due to its crucial connecting point between Chicago and New York. Because Cleveland is an NFL city, AWS, Google, Microsoft, and Facebook have increased their cloud and edge client activity in the area, trying to develop nodes and local zones.

This location, which is only 5 minutes from Cleveland Hopkins International Airport and 15 minutes from downtown Cleveland, has robust fiber connectivity from over seven different providers. Originally constructed in 1988 as a data center and operations center for National City Bank, it was enlarged in 2008 when a major financial institution purchased the property to develop a modern technology campus. This financial institution (an investment grade tenant) leases approximately 26% of the facility and has a lease term of approximately 14 years remaining on their present lease.

"We believe the existing 3 MW data center is unique in the local market and will be appealing to technology and financial services firms that run high-density compute applications. The ability to convert underutilized space into operational data halls also creates an attractive value-add opportunity for this asset. In addition, the current lease structure provides us with what we believe are long-term, predictable rental revenues."

The building has about 138,500 square feet of space offered to lease as a value-add investment opportunity. In addition, an 8,000 square foot turn-key data hall with 3 MW of essential power at N+1 is available. The data center includes a 48-inch elevated floor and liquid-cooled racks that can handle over 300 watts per square foot of power. The building also features about 59,000 square feet of flex/R&D space that could be relocated to accommodate more data center space.