150 S 1st: Hines Group acquires Digital Group's San Jose data center for $60m

According to reports from BizJournal, The Hines Group has acquired Digital Realty’s data center in San Jose, California. The data center in question is a 179,800 square foot, two-story building at 150 S. First Street. The purchase price is said to be $59.6 million. The building sits on a 2.4-acre site, and it was built in 1986. It was also renovated in 1999.

Furthermore, the facility offers up to 180,000 square feet of floor space. 10,000 square feet and 40,000 square feet of space are used for office and retail, respectively. The remaining 130,000 square feet of space is for data center use. In addition, the data center also has 7.2MW of capacity.

The facility serves as Rackspace’s SJC2 location. According to Bizjournal, it is unclear what Hines Group intends to use the property for. However, the site could be redeveloped and used for an office high-rise. Besides, Hines Group is majorly focused on industrial, residential, and office properties. It has also been involved in the development of a 380,000 square feet data center in New Jersey.