NEW YORK, April 9, 2019 /PRNewswire/ -- National real estate investor and developer 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 square foot data center and is expected to be delivered as soon as 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.
Christopher Flynn has been named President of Lightstone Data Fund with responsibility for managing the fund and its technology-based assets. Mr. Flynn brings over 20 years of experience in the data real estate sector and a proven record of building data centers for EdgeConnex in 35 global locations within four years.
Lightstone, founded by David Lichtenstein, is one of the largest and most diversified privately held real estate companies in the United States. Lightstone is active in 28 states across the country, developing, managing and investing in all sectors of the real estate market, including residential, hospitality, commercial, and retail. With over 178 existing properties, Lightstone's over $6 billion portfolio currently includes over 4.5 million square feet of office, retail and industrial commercial properties, over 15,000 residential units, and 4,300 hotel keys. Lightstone also owns over 12,000 land lots across the country.
Headquartered in New York City, Lightstone continues to grow its development portfolio with over $3.5 billion currently under development in the residential and hospitality sectors spread across New York City, Los Angeles, and Miami.