CoreSite executed agreement to purchase Sunrise Technology Park for further expansion to meet customer demand in Reston, VA.
CoreSite Realty Corporation has announced that it is under binding agreement to expand its Reston campus with the planned purchase of the Sunrise Technology Park (STP), a 21.75-acre light-industrial / flex office park 0.3 miles from CoreSite’s existing VA1 and VA2 buildings.
The STP site currently hosts four buildings totaling 315,000 sq ft. Based upon its expectations regarding entitlements for the campus, CoreSite estimates that it could build over 660,000 sq ft of new data center capacity across multiple phases on the new parcel. CoreSite anticipates closing on the acquisition of STP in the fourth quarter of 2016. CoreSite expects to invest $60 million plus transaction costs to acquire STP, followed by an additional $90 million to complete Phase 1 of the master-planned development. CoreSite anticipates that Phase 1 will be comprised of a) redeveloping an existing 48,000 sq-ft industrial building to data center use, b) building a ground-up 92,000 sq-ft data center shell, and c) building a 92,000 sq-ft structure to house centralized infrastructure intended to support needs across the planned full buildout of the campus. CoreSite expects to begin construction of Phase 1 during the third quarter of 2017, and substantially complete that Phase in the second quarter of 2018. CoreSite anticipates continuing to invest in and scale the campus by constructing additional phases to meet customer demand and, at full build out of the new site, the company estimates that it may invest $400 - $500 million across multiple phases.