Brookfield has acquired a data center in Chicago, Illinois, as part of its takeover of bankrupt operator Cyxtera.
Citing DuPage County property records, CoStar reports an affiliate of real estate and infrastructure investment giant Brookfield paid $83.5 million for the ORD2 building at 2425 Busse Road in Elk Grove Village earlier this month.
The seller of the 163,750-square-foot building was a Deutsche Bank affiliate.
Cyxtera filed for Chapter 11 in June 2023. In November the company announced a deal with Brookfield that will see the investment firm take over the colo provider, along with several leased data centers, for $775 million.
Precise details of which facilities were to be acquired weren’t shared, but included several Digital Realty and Digital Core REIT-owned facilities. Brookfield intends to merge Cyxtera with its other US colo firm, Evoque.
Toronto-based Brookfield declined to comment to CoStar News beyond Evoque’s previous statement about the Cyxtera takeover. Deutsche Bank did not immediately respond to CoStar’s request for comment.
Cyxtera’s two-story ORD2 facility – consisting of ORD2-A and -B – covers 148,000 sq ft (13,750 sqm) of raised floor space across a 163,750 sq ft (15,210 sqm) footprint. The building offers a total of 50MW of utility power and currently 17.6MW of generator capacity.
The colocation firm took over the facility as part of its 2017 carve-out from CenturyLink. Prior to Centurylink, the site had been operated by Exodus and then Savvis. Rreef CPIF 2425 Busse Road, LLC was the last listed owner of the site.
Cyxtera previously operated another data center in Chicago – ORD3 at 1441 Touhy Ave, in the Elk Grove area – but rejected the lease at the Stack-owned facility last year as part of its bankruptcy.
Cyxtera had offered 3.5MW and 27,000 sq ft (2,500 sqm) of capacity across two data halls at the single-story facility known as ORD3-A and ORD3-B. Cyxtera was scheduled to cease operations at this data center and reject the lease effective September 4, 2023.
Formed out of CenturyLink’s colocation business, Cyxtera went public via a SPAC in 2021. Prior to the bankruptcy, the colo firm operated more than 60 facilities totaling more than 245MW across 29 markets globally - with the majority of its portfolio leased.
Since the bankruptcy, it has exited or amended the leases on a number of data centers.
