KeyBank Data Center Sale-Leaseback_Property for Sale

28850 Aurora Rd, Solon, OH, 44139-1839, US

KeyBank Data Center Sale-Leaseback

Asset Description

The JLL Data Center Solutions team is pleased to bring to market the KeyBank Data Center located in Solon, OH (Cleveland MSA). Built in 2009, the data center houses primary IT production for the bank. KeyBank will execute a 2-year leaseback for the entire data center asset.

Investors are provided optionality for immediate value creation by leasing up the unoccupied West Data Hall portion of the facility while benefiting from two years of lease payments 100% guaranteed by an investment grade tenant.

This opportunity offers investors best-in-class data center infrastructure with strengthening local real estate fundamentals, secure cash flow from KeyBank, and substantial upside for future expansion, lease-up, and/or conversion to a colocation data center.

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Attributes

Building area gross

9,788 m²

Year built

2009

Land area gross

5.94 ha

Occupancy

100%

NOI

A$3,100,000

Media

Investment Highlights

Industry-leading and investment grade tenancy: KeyBank’s market capitalization is over $10.7 billion (S&P: A-, stable outlook).
Absolute triple net lease structure: 2-year sale-leaseback with zero landlord responsibilities and 3.0% annual rent escalations to hedge against inflation.
Value-add optionality: Buyer shall have the immediate repositioning opportunity to lease the unoccupied West Data Hall component during the leaseback term.
Growing colocation market: High-quality product in a market with limited wholesale supply available.
Expansion capability: 14.67-acre site allows for future expansion to double the size of the data center on the property.