By Meghan Hall
A data center in the growing suburban market of Lynnwood has traded hands. In a transaction that closed just before the end of 2020 but only recently recorded, Rackhouse Seattle was sold to Los Angeles-based Landmark Infrastructure for $15 million. Public documents indicate that the seller is affiliated with Chirisa Lynnwood LLC.
Located at 4200 194th Street SW, the property was leased to Digital Fortress, an enterprise-level colocation provider, in 2019. The property was Digital Fortress’ third lease in the region. Rackhouse Seattle operates as a 5.4 megawatt (MW), high-density data center and is designed to meet a wide variety of density and redundancy requirements. The building also provides 47,820 square feet of server-ready space.
“With an abundance of fiber providers within the building and excellent connectivity to the Westin Exchange, this facility offers low latency connectivity to Vancouver and the Western U.S.,” explains a marketing flyer obtained by The Registry.
24/7 security, office and flex space are also part of the building, all elements “necessary” for a more modern IT operation, adds the property flyer.
The property has changed hands a number of times in the past two years, according to public records. In May of 2019, Lincoln Rackhouse, the data center division of Lincoln Property Company, along with Principal Financial Group, acquired the property for $5.5 million. On December 4, 2020, Chirisa Lynnwood LLC, whose address is tied to Digital Fortress on excise tax documents, purchased the property for $7.75 million. Then, just over three weeks later on December 30, 2020, it appears the parcel a third and final time to Landmark Infrastructure for $15 million.
The newest owner, Landmark Infrastructure manages and owns a portfolio of real property interests and infrastructure that is leased to firms in the wireless communication, outdoor advertising and renewable power generation industries. In its acquisitions, the company seeks to acquire properties with triple net lease arrangements in place that contain contractual rent escalation for predictable cash flow.
“Our real property interests underlie our tenants’ infrastructure assets, including cellular towers, rooftop wireless sites, billboards and wind turbines,” Landmark Infrastructure states on its websites. “These assets are essential to the operations and profitability of our tenants.”