725 S. Wells, Chicago, IL

CHICAGO, IL—CIM Group and fifteenfortyseven Critical Systems Realty have acquired an operating data center at 725 South Wells in the heart of Chicago's business district. The 66,000-square-foot facility was purchased from Digital Capital Partners, a Chicago-based wholesale carrier-neutral data center provider.

Located in a fiber-rich, Tier 1 data center market, the newly acquired facility further expands the partnership's data center portfolio with 5 MW of total in-place capacity. 725 S Wells is positioned atop of the Chicago “Fiber Ring,” providing tenants with access to more than 15 different fiber carriers and robust connectivity to 350 Cermak Road, Chicago's largest and most interconnected data center.

“This established facility adds to our growing portfolio of data center properties that we believe will serve both existing technology and enterprise tenants as well as new customers,” says J. Todd Raymond, CEO of 1547. “With this new facility we will have the ability to provide customers of both of our Chicago facilities with access to a dense network of fiber providers and trans-continental connectivity to support their evolving business needs.”

This acquisition follows the July 2018 acquisition of the 230,000-square-foot Midway Technology Centre on Chicago's South Side. Chicago serves as one of the top data center markets in the United States, functioning as a major hub for content delivery services due to its central location. With relatively low power costs, readily available access to trans-continental fiber networks, an increasingly large cloud ecosystem, favorable business climate, access to international financial exchanges, and low risk for natural disaster, the region will provide 725 S Wells' and Midway Technology Centre's customers with an advantageous location to host critical data and infrastructure.

“We're very proud of the project we built from scratch and are pleased to see the asset in the hands of the CIM/1547 partnership,” says Christopher Jensen, partner of DCP and managing partner of Anderson Pacific Corporation.

“DCP is delivering a first-class facility with abundant fiber connectivity and room for expansion,” says Bob Heiderscheidt, managing partner of DCP and CEO of MDI Access.

In addition to the acquisition of the Midway Technology Centre project, the CIM and 1547 partnership has also purchased data center properties in San Francisco, Toronto, and Cheyenne, Wyoming.

Seyfarth Shaw provided legal representation to Digital Capital Partners in the transaction. The Seyfarth Real Estate team was led by partner Michael Rechtin and included Tori Campbell and Michelle Palka in Chicago.