Why So Many Data Centers in Irvine?

MacKenzie: “Lenders still often have heartburn over underwriting the higher rents per square foot and higher loan basis.”

IRVINE, CA—Irvine has access to substantial fiber optics from numerous telecom providers and abundant power availability, and the data centers also serve the growing base of tech companies in the area, HFF West Coast leader Kevin MacKenzie tells GlobeSt.com. The firm recently secured a $62.5-million refinancing for Irvine Crossings, a 395,673-square-foot, single-story data center and industrial property in the Airport are, on behalf of the borrower Menlo Equities. HFF placed the five-year, full-term interest only, fixed-rate financing with Deutsche Bank.

MacKenzie tells us exclusively that there are six or seven other datacenters in the Irvine area, so we asked him what factors make this market attractive to these users. “Irvine has access to substantial fiber optics from numerous telecom providers and abundant power availability, which is why there are six or seven other datacenters in the area,” said MacKenzie. “These also serve the growing base of technology companies in the area.”