Real estate firm Lincoln has re-acquired a data center in Phoenix, Arizona.

The company has announced the purchase of 2500 W. Frye Road in Chandler. Terms of the deal were not shared.

Located on 14.5 acres, the 191,000-sq ft (17,740 sqm), 28MW facility features four data center halls, one of which is fully leased to a Fortune 500 enterprise user. It is served by an existing and dedicated on-site Salt River Project (SRP) substation.

Lincoln plans to fit out the remaining three halls, adding 16MW of capacity. Lincoln will also transition the project from an evaporative-cooled to an air-cooled mechanical system.

An initial 4.2MW is targeted for delivery in early Q1 2026.

The site is planned for additional development, which was approved by the City of Chandler as part of a development agreement initiated by the property’s previous owner, CBRE.

“We are grateful to the City of Chandler and CBRE for their collaboration as we approached the closing of this acquisition,” said Lincoln Property Company EVP and national data center group leader, Ryan Sullivan. “Arizona’s unprecedented, immediate demand from hyperscale, enterprise, and neocloud users has pushed local data center vacancy to record lows. This facility will add critical turnkey capacity with immediately available utility power. It’s a rare combination that we look forward to delivering as part of our ongoing value-add data center strategy.”

Lincoln has a history with the Frye Road property, previously acquiring the building in 2018 as part of a larger data center portfolio and selling it in 2019 to CBRE.

“We originally purchased and managed this facility to achieve its highest and best use,” added Lincoln Property Company senior EVP, David Krumwiede. “When we sold the asset, it was to an entity that was equally committed to preserving and enhancing its value. Now, it is our turn to set yet another performance bar for tenants and the Chandler market, at a time when the need for responsible data center space couldn’t be higher.”

Originally a manufacturing building constructed in 1988, the property was converted to a data center in 2002. The facility was part of a campus purchased by Bank of America in 2008. More than a decade later, the bank decided to split the campus up and sell the data center portion.

Lincoln Rackhouse (the retired name of Lincoln's data center division) and Principal Real Estate Investors acquired the site as part of the three-building portfolio in 2018. The companies sold the facility to CBRE Global Investors in 2019 for $72.7 million.

Defunct colo firm INAP leased the site from Lincoln Rackhouse in 2018 but filed for bankruptcy in 2023. INAP is now HorizonIQ, which focuses on cloud and hosting services, and has seemingly exited the site. In Arizona, HorizonIQ now offers services out of an Iron Mountain facility in Phoenix, according to its website.

CBRE Investment Management last year filed and was granted approval to expand the site. The expansion would add a three-story, 243,000 sq ft (22,575 sqm) building,

News that Lincoln was looking to repurchase the site surfaced last month.

CBRE represented the seller in the deal.