Menlo Equities has sold a data center and warehouse to CBRE Global Investors in the Irvine area of Los Angeles, California for $180 million.
The building, known as Irvine Crossing, comprises around 400,000 sq ft (37,100 sqm) leased to two tenants. Set across two addresses – 17871 Von Karman Ave. and 17836 Gillette Ave. – around half the building is used as a distribution warehouse used by Amazon, while the other half is a data center leased to Cyxtera.
BizJournal reports the deal closed in June at a sale price of $180.7 million. Menlo bought the building in 2011 for $47 million and was reportedly the largest industrial property transaction in Orange County that year.
Update: BizJournal originally said the price was $1.8m, not $180m. We also reported the figure and regret the error.
At the time of Menlo’s purchase in 2011 the data center was occupied by Savvis Inc., which was bought by CenturyLink for $2.5 billion the same year. CenturyLink (now known as Lumen) sold its data center business to Medina Capital Advisors and Longview Asset Management in 2017 from which Cyxtera was formed.
Today Cyxtera calls the facility LAX3 and offers 115,000 sq ft of total raised floor space from the 20MW site.
Cyxtera recently announced it was leasing the entirety of a new 9MW Prime Data Centers facility in Santa Clara, California.
In February the company announced plans for a $3.4bn merger with the Special Purpose Acquisition Company SVAC. The SPAC merger is due to complete soon. During financial filings in the lead-up to the merger it quietly announced it was exiting the Moses Lake data center in Washington.