Data Center: Sabey also expands data center holdings with $120M NYC deal
by Greg Lamm for Tech Flash
Seattle’s Sabey Data Center Properties has bought a 1-million-square-foot tower in New York City for $120 million and plans to convert it into a data center.
The 32-story building in lower Manhattan was once home of Verizon. Sabey plans to convert it into a data center serving multinational companies and other firms looking for server space in New York City.
The Intergate.Manhattan building buy is part of Sabey’s national expansion. And the purchase comes the same week that The Benaroya Co. announced it had bought a large data center in Boise, Idaho, from Hewlett-Packard.
In a statement about the purchase, Sabey said that the building sits at a confluence of the world’s transatlantic cable and fiber routes and that the building is “a crucial presence as the Sabey Data Center network expands.”
John Sabey, Sabey Data Center Properties president, also made note of a failed attempt to get the Washington Legislature to approve a state sales tax break for data centers. But he said in a statement that failure was not a factor in the company’s decision to buy an out-of-state data center:
While we are disappointed that the Washington Legislature failed to extend the sales tax incentive for data centers, this Manhattan project is not a reaction to their failure to act. It may be in the future that we will be building data centers that could have been built in Washington.
Sabey says it plans to open Intergate.Manhattan in 2012. The building at 375 Pearl Street was built in the 1970s as a central office for New York Telephone (Verizon). Verizon still owns three floors as a condominium interest. The tower is located in one of the city’s most physically secure zones, adjacent to One Police Plaza.
Sabey bought the tower from M&T Bank and Taconic Investment Partners. Youngwoo & Associates has an interest in the property and is a local partner.
Sabey has more than 2 million square feet of data center space in Washington state, including Intergate.Columbia in East Wenatchee, Intergate.West and Intergate.East in Tukwila and Intergate.Quincy, a 520,000-square-foot campus that broke ground in Quincy in April.