A fully leased data center and office property in Arlington Heights, Illinois, is currently available for purchase. The real estate firm Marcus & Millichap is listing the property at 545 E Algonquin Road for $13 million, providing potential investors with a stable, cash-flowing asset.
Property Overview: A Prime Data Center Asset
The 111,665 sq ft (10,375 sqm) facility sits on 5.5 acres in Cook County, Illinois. The single-story building, constructed in 1990, offers a flexible mix of research and development space along with data center infrastructure. It is 100% leased, with current tenants contributing a combined annual rent of $1.04 million.
The building is strategically located just outside Chicago, making it an attractive option for data center investors seeking stable, long-term assets in a key metropolitan area.
Tenants and Lease Details: Stability and Long-Term Occupancy
The property is divided between two primary tenants. Intertek, a global product testing and certification company, occupies 85% of the space. Having been at the site since 2004, Intertek has a strong track record at this location. GigeNet, a managed services provider, leases the remaining 15%. GigeNet has been a tenant since 2006 and operates a 17,000 sq ft (1,580 sqm) data center at the site.
The lease for GigeNet was recently renewed in June 2021, with the contract running until May 2028. The lease includes three five-year options, ensuring continuity for the next decade. This makes the site an appealing acquisition for those seeking a dependable and low-risk investment.
GigeNet: A Trusted Provider of Managed Hosting Services
Founded in 1999, GigeNet is a prominent provider of managed hosting solutions. The company specializes in dedicated hosting, cloud services, hybrid environments, and colocation solutions. GigeNet operates multiple data centers across the United States, including locations in Los Angeles and Ashburn, Virginia. Its Arlington Heights facility plays a critical role in the company’s operations, offering colocation and cloud services to a diverse range of clients.
The 17,000 sq ft data center within the Arlington Heights site is fully equipped to support a variety of hosting needs, further enhancing the site’s appeal to prospective buyers.
Recent Sale History and Investment Opportunity
The Arlington Heights property was previously sold in 2018 for $11.4 million to Crystal Acquisitions. This transaction followed its acquisition by Biynah Partners and Alex Brown Realty, now ABR Capital Partners. The site’s steady growth and long-term lease agreements suggest it has proven to be a solid investment, further reinforcing its potential for future investors.
Key Investment Takeaways
- Prime Location: Situated in Arlington Heights, a suburban area near Chicago, the property benefits from proximity to major metropolitan infrastructure.
- Fully Leased: The property is 100% occupied, offering a consistent stream of rental income.
- Strong Tenants: Intertek and GigeNet provide long-term stability, with GigeNet’s lease secured through 2028 with additional renewal options.
- Potential for Growth: The site offers opportunities for operational expansion, given its flex R&D/data center capabilities.
Frequently Asked Questions (FAQs)
1. What is the total size of the GigeNet-occupied data center for sale in Arlington Heights?
The data center and office property measures 111,665 sq ft (10,375 sqm), offering ample space for data center operations and office functions.
2. Who are the tenants of the Arlington Heights property?
The property is leased to two tenants: Intertek, occupying 85% of the space, and GigeNet, which leases the remaining 15%.
3. How long is GigeNet’s lease at the property?
GigeNet’s current lease runs until May 2028, with three five-year renewal options, ensuring a long-term presence at the facility.
4. What is the asking price for the data center property in Arlington Heights?
Marcus & Millichap is listing the property for $13 million.
5. What other locations does GigeNet operate from besides Arlington Heights?
In addition to its Arlington Heights location, GigeNet operates data centers in Los Angeles, California, and Ashburn, Virginia, providing colocation and managed hosting services across multiple regions.
