Real estate company JDM Partners purchased a Phoenix data center from State Farm Insurance in early July. The real estate group is buying property to take advantage of the growing Arizona jobs market. The deal, which included two properties, closed at $38.1 million.
The data center facility that JDM acquired covers 250,000 square feet and sits on over 25 acres of property on the Phoenix-Tempe border. As part of a sale-leaseback deal, State Farm will remain in the building as the sole tenant of the data center infrastructure. This means that JDM won't have to search for tenants.
The Phoenix area is popular for colocation businesses and has been called the next big data center market by industry analysts. Statutory tax incentives and consistently lower power costs provide some incentive to colocation services providers looking to open new data centers. For instance, the JDM facility is joined by other Phoenix data centers from companies like CyrusOne, eBay and OneNeck.
JDM has purchased real estate from State Farm in the past. In 2014, JDM bought an 11-state operations center portfolio, which totaled 3.4 million square feet.
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