DENVER and SECAUCUS, N.J., Jan. 18, 2013 /PRNewswire/ -- CoreSite Realty Corporation (NYSE: COR), a provider of powerful, network-dense data center campuses and the CoreSite Mesh, which enables interconnected communities of service providers and enterprises, today announced the purchase and planned development of a new data center campus in Secaucus, New Jersey.
CoreSite is under contract to acquire a 280,000 square-foot building which will be referred to as NY2, on 10 acres of land in Secaucus, New Jersey. At full build-out, CoreSite expects NY2 will offer up to 18 critical megawatts of capacity. In addition to NY2, the land site will support additional data center development as market demand warrants.
CoreSite anticipates closing on the acquisition in early February, subject to customary closing conditions, beginning construction to convert the existing building to data center specifications in Q1, 2013, and delivering turn-key capacity in Q4, 2013. CoreSite expects to invest $65.0 million to acquire the facility, redevelop the powered shell, and complete the initial phase of inventory consisting of 65,000 square feet. Further, CoreSite anticipates continuing to invest in and scale the campus by constructing additional phases to meet customer demand.
"CoreSite's entry into Secaucus is an important step in the execution of our strategy to extend our U.S. platform supporting latency-sensitive customer applications in network-dense, cloud-enabled data center campuses," said Tom Ray, President and Chief Executive Officer, CoreSite. "Our New York campus is designed to meet performance-sensitive customer requirements supported by our location at the nexus of robust, protected, low-latency network rings serving Manhattan as well as global cable routes to Chicago, Frankfurt, London, and Brazil. Additionally, customers are able to connect directly to service nodes for Amazon Web Services Direct Connect."
Pre-commitments from key CoreSite service partners and preliminary interest shown by prospective customers in NY2 demonstrate the benefits CoreSite offers with the optimal combination of cost-effective capacity and power, diverse high-performance network connectivity, and interconnected communities. The result for CoreSite customers is the ability to propel growth and gain long-term competitive advantage. The availability of direct connections to high speed networks in NY2 is particularly interesting to financial firms looking to reduce latency and improve performance. Supporting this goal and reflecting the strength of the NY2 location and CoreSite's North American operating platform, three network service providers have pre-committed to serve NY2, consisting of CoreSite partners Sidera Networks, Zayo, and Seaborn Networks, each of which provides high-performance network support to the financial services, cloud and network communities.
"The new CoreSite data center in New Jersey fits perfectly with Sidera's growth strategy," said Clint Heiden, President, Sidera Networks. "This expansion gives CoreSite customers immediate access to over 40 financial exchanges and the Sidera Xtreme Ultra-Low Latency Network."
"We are pleased to bring Zayo's Bandwidth Infrastructure services, including Dark Fiber, Wavelengths, Ethernet and IP services, into CoreSite's new NY2 facility," said Glenn Russo, EVP of Corporate Strategy and Development, Zayo. "The Zayo and CoreSite relationship continues to expand connectivity for current and future customers of both companies."
"NY2 is an integral part of Seaborn Networks' plan for CoreSite to serve as turnkey backhaul provider for the U.S. landing of Seabras-1, our U.S.-Brazil submarine cable with a planned Ready For Service (RFS) date of Q1, 2015," said Larry Schwartz, CEO, Seaborn Networks. "This is the first step in CoreSite providing a full mesh backhaul and point of presence network for Seabras-1's U.S. landing."
CoreSite intends to ensure the availability of high-capacity and high-speed lit services as well as a robust dark-fiber tether between NY2 and CoreSite's NY1 location at 32 Avenue of the Americas in Manhattan, enabling CoreSite to provide seamless interconnection across its New York campus. The seamless connection between NY1 and NY2 will provide distributed direct-connect access to the CoreSite Mesh, creating one of the most comprehensive cloud communities in the greater New York area and immediately bringing together over 75 leading network service providers as well as public, private, and hybrid cloud providers.
Digital content providers will also benefit from CoreSite's reliable infrastructure and scalable campus that can support continued growth in media consumption. Furthermore, the network providers in the new NY2 location will enable low latency connectivity within and among the fastest routes available to the financial services community.
Following the launch of CoreSite's previously announced fifteenth data center, located in Reston, Virginia, the new Secaucus data center will be the sixteenth data center in CoreSite's national platform, which spans nine U.S. markets and includes more than 275 carriers and service providers and more than 15,000 interconnections.
About CoreSite CoreSite Realty Corporation (NYSE: COR) is the data center service provider chosen by more than 750 of the world's leading carriers and mobile operators, content and cloud providers, media and entertainment companies, and global enterprises to run their performance-sensitive applications and to connect and do business. CoreSite propels customer growth and long-term competitive advantage through the CoreSite Mesh by connecting the Internet, private networking, mobility, and cloud communities within and across its 14 high-performance data center campuses in nine markets in North America. With direct access to 275+ carriers and ISPs, over 180 leading cloud and IT service providers, intersite connectivity, and the nation's first Open Cloud Exchange that provides access to thousands of lit buildings and multiple key cloud on-ramps, CoreSite provides easy, efficient and valuable gateways to global business opportunities. For more information, visit www.CoreSite.com.
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," "seeks," "approximately," "intends," "plans," "pro forma," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond CoreSite's control, that may cause actual results to differ significantly from those expressed in any forward-looking statement. These risks include, without limitation: delays in construction; adverse developments in local economic conditions or the demand for data center space in Secaucus, New Jersey; increased operating costs; difficulties in completing the property acquisition; changes in real estate and zoning laws and increases in real property tax rates; and other factors affecting the datacenter industry generally. All forward-looking statements reflect CoreSite's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, CoreSite disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause CoreSite's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in CoreSite's most recent annual report on Form 10-K, and other risks described in documents subsequently filed by CoreSite from time to time with the Securities and Exchange Commission.