Two data centers owned by Brightspeed, the US-based internet service provider (ISP), are currently available for sale in Missouri. These facilities, located in Jefferson City and Rolla, are being marketed as sale-leaseback opportunities, which means Brightspeed will lease the properties back for continued operations.
Sale Details for 319 Madison Street in Jefferson City
The telecommunications and office building at 319 Madison Street, Jefferson City, is being offered for $4.6 million. Spanning 59,010 square feet (5,480 sqm) and set on 0.76 acres, the facility was originally built around 1970 and is a former CenturyLink site. This property is essential for fiber and cable support across the entire city, providing pivotal infrastructure to the local community. The sale includes a 20-year leaseback agreement, ensuring Brightspeed will continue operating from the location.
Sale Details for 1008 N. Elm Street in Rolla
Another Brightspeed facility at 1008 N. Elm Street in Rolla, located on half an acre in Phelps County, is listed for $2.9 million. The building covers 31,355 square feet (2,110 sqm) and is a central office offering critical telecommunications infrastructure for the city. Like the Jefferson City property, it is also available on a 20-year leaseback term, allowing Brightspeed to retain control of its operations at the site.
Background on Brightspeed and Recent Sales Activity
Brightspeed was established in October 2022 following the acquisition of Lumen Technologies’ broadband and telecom assets by Apollo Global Management. This deal brought the former CenturyLink company’s ILEC (Incumbent Local Exchange Carrier) business under Brightspeed’s management in 20 states. The company continues to operate as a key player in the broadband and telecom sectors, supported by significant investment from Mubadala Investment Company, Abu Dhabi’s sovereign wealth fund.
Earlier in 2024, Brightspeed also sold a large telecommunications facility in Columbia, Missouri. The 625 Cherry Street property, a 97,540 sq ft (9,060 sqm) central office, fetched $8.5 million in a similar sale-leaseback agreement.
Why Brightspeed is Selling These Properties
Brightspeed’s decision to offer these properties for sale in Missouri as part of a sale-leaseback arrangement is part of a broader trend in the telecommunications industry. Sale-leaseback deals provide companies with an opportunity to free up capital while maintaining operational control of critical assets. This strategy allows companies like Brightspeed to generate funds for investment in infrastructure or other initiatives while retaining the ability to operate out of the same facilities.
The Growing Trend of Sale-Leaseback Transactions
Sale-leaseback transactions are becoming increasingly popular in the data center and telecommunications sectors. By selling their real estate assets while simultaneously leasing them back, companies can tap into liquid capital for further growth and strategic investments without disrupting operations. This model has gained traction particularly among companies like Brightspeed, which need to balance investment in network expansion with cost-effective real estate management.
Frequently Asked Questions (FAQ)
1. What is a sale-leaseback deal?
A sale-leaseback deal allows a company to sell its property to another party and then lease it back from them. This provides the company with immediate capital while continuing to use the property for operations.
2. Why is Brightspeed selling these data centers?
Brightspeed is selling the properties as part of a sale-leaseback strategy to free up capital for reinvestment into other areas of its business, such as infrastructure improvements and network expansion.
3. What is the significance of these Missouri properties?
Both properties are critical for Brightspeed’s telecommunications infrastructure in Missouri. They provide essential fiber and cable support, ensuring continued high-quality service for local communities.
4. What other properties has Brightspeed sold recently?
In addition to these Missouri properties, Brightspeed sold its 625 Cherry Street location in Columbia in December 2024, part of a similar sale-leaseback arrangement.
5. How will these sales affect Brightspeed’s operations?
Despite the sales, Brightspeed will continue to operate from these properties due to the 20-year leaseback agreements, ensuring that day-to-day operations remain unaffected.
