SANTA CLARA — A data center company has grabbed big industrial buildings in Santa Clara in a deal that provides a reminder that investors have yet to slake their thirst for Silicon Valley real estate despite the economic perils posed by the coronavirus.
EdgeConneX, an operator of data centers on three continents, has purchased buildings totaling 229,000 square feet in Santa Clara, public documents show.
Founded in 2009, EdgeConneX has since 2013 built more than 40 data centers, according to the company’s website.
Virginia-based EdgeConneX operates in 28 markets in the United States, two in South America, and four in Europe, the company’s website shows.
An EdgeConneX affiliate, EdgeConneX Silicon Valley Holdings II, paid $83.3 million for the buildings, Santa Clara County documents filed on Aug. 14 show.
The seller was an affiliate of DRA Advisors, a New York City-based real estate investment firm.
The transaction enriched DRA with what looks to be a hefty profit.
At the time of the transaction, the property value for the site was $53.7 million, county assessment records show.
It’s possible EdgeConnX will redevelop the property into a modern data center complex. However, no proposals for the development of the site are on file with Santa Clara officials.
At present, Foxconn International, a supplier of electronics parts; and SVcolo, an Internet service provider, are operating in the just-bought property.
The deal is a reminder that Silicon Valley remains an attractive location for real estate investors who are scouting for choice properties.