fifteenfortyseven Critical Systems Realty and Harrison Street acquire Portland Carrier Hotel & Data Center
Harrison Street and 1547 Data Center Real Estate Fund II, an affiliate of fifteenfortyseven Critical Systems Realty (1547), have acquired the Pittock Block building, a carrier hotel, colocation data centre and office building located in downtown Portland, Oregon.
The 302,200 square foot building is one of the most connected buildings in the United States, serving 179 service providers, and is one of only two primary Internet Exchanges in the entire Northwest. Additionally, Hillsboro, located 18 miles to the west of the property and home to Intel, is one of the fastest growing data centre submarkets in the world, further fueling growth within Pittock Block.
“Strategically located with direct access to seven subsea telecommunications cables, Pittock Block is a premier telecommunications Internet Exchange for the West Coast and represents the type of asset we are seeking to add to our connectivity-focused platform with Harrison Street,” says J Todd Raymond, CEO of 1547. “We believe there is significant opportunity at Pittock as data centre requirements continue to grow exponentially in the region. Our plan is to leverage the strong foundation built by the Pittock Block team and immediately expand data centre and co-location capacity while simultaneously investing further into the building’s security and world-class meet-me-room.”
Michael Hochanadel, Managing Director and Head of Digital Real Estate at Harrison Street, says: “Pittock Block represents a rare opportunity to acquire an established interconnection building with significant opportunity for growth. The Pacific Northwest continues to be a top destination for end users seeking highly connected data centre capacity given its robust telecommunication infrastructure that provides low latency to key high growth markets including Asia. We are excited to expand our partnership with 1547 and acquire a highly strategic facility that will enhance our ability to deliver robust connectivity solutions. We look forward to continuing to identify and invest in critical digital assets.”
Pittock Block is the second investment for Harrison Street and 1547 following the acquisition of the historic Wells Building, a carrier hotel and data center located in Milwaukee, Wisconsin. The acquisition is Harrison Street’s second carrier dense data centre investment. Harrison Street has committed approximately USD1 billion in digital infrastructure projects since 2018.