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Debt & Equity

Lightstone launches $300M platform to buy proptech, telecom assets

Lightstone announced the launch of a new platform to purchase telecommunications and technology real estate assets.

With an initial allocation of $300 million, the platform focuses on acquiring existing but underutilized data centers and telecom infrastructure, existing technology-related real estate, and new development opportunities.

“As the use of cloud-based data skyrockets and growth of cloud platforms like Amazon and Google continues, there is overwhelming need for large-scale data center facilities that can support these providers and services,” said David Lichtenstein, CEO of Lightstone.

“We’ve launched the platform to capitalize on the opportunity to meet this demand.”

Lightstone’s platform will focus on both primary and secondary markets, including potential expansion into European markets.

The company’s investments will encompass underutilized data center facilities with anchor tenant sales and leasebacks from large enterprise companies, existing technology-related real estate that can support additional leases, and new development opportunities presented by the growth of tech giants and cloud providers.

In January 2019, the platform closed on its first development site, acquiring 2175 Martin Avenue in Santa Clara, California. The site will be a three-story, 88,000 s/f data center and is expected to be delivered early 2021.

Santa Clara’s advantageous utility power rates make it a highly sought after submarket by Silicon Valley data center end users. As a result, Santa Clara is one of the tightest data center markets in the country with extremely high barriers to entry.

Lighstone has tapped former EdgeConnex vice president Christopher Flynn to manage the new fund and its technology-based assets.

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