"We like the deal because of the contraction that has happenedin the whole data center telco marketplace in the US, let alone inthe West, let alone California," he tells GloebSt.com. "A lot ofthe space was built three, four, five years early and now it's allbeing gobbled up, especially in the Silicon Valley."

The family-owned Red Sea Group originated in Tel Aviv, Israel,and came to the US commercial real estate market in 1992. In 2004,Red Sea Group USA, led by its president Avner Papouchado, CFO MaxBrandt and EVP Mitch Kralis shifted the US headquarters from Dallasto the Los Angeles area. The company's portfolio includes $1billion of hotel, office, industrial, retail and residentialproperties in Eastern and Western Europe, South Africa, Asia andNorth America.

Kralis didn't say how much he plans to invest in data centers,but says he's looking at opportunities nationwide and expects toclose on two additional centers in the next few months.