DivcoWest acquires New York carrier hotel in New York; H5 will manage interconnection and colocation

Jun 01, 2021 | Posted by admin

DivcoWest, a real estate investment firm based in San Francisco, has announced that it has acquired a 10-story, mixed-used building carrier hotel from Jamestown Properties for $135 million. The building is located at 325 Hudson St., in Hudson Square. 

In concert with this transaction, H5 Data Centers announced it would manage the colocation space in the building. It is a good partnership because H5 has experience managing carrier hotel infrastructure in secondary markets. In 2018, H5 acquired 100 Taylor in San Antonio, and it acquired 1525 Rockwell Ave in Cleveland in 2017. Both buildings were acquired as Carrier Hotels. 

New York has seen changes to its interconnection landscape in the last decade. 111 8th was the premier address in New York. However, since Google acquired the massive building in 2010, it has slowly not renewed data center tenants leading clients to eschew the building and migrate to other locations in NY, including 60 Hudson, 85 10th, and 32 Avenue of the Americas.

325 Hudson can be seen as a tertiary telecom hotel in the New York Market and will likely see a pick up in Interconnection centric clients. 

Originally constructed as a warehouse in 1965, 325 Hudson was renovated in 2004 with data center space. In 2012, Jamestown Properties acquired the building.

The CEO of H5 Data Centers, Josh Simms, said that H5 Data Centers would continue working with its existing interconnection system at the building, which comprises 40+ unique networks. Ariel Aber, Head of DivcoWest’s New York region, also said that the building acquired offers real optionality for different users. He also added that the building is appealing for research use and life sciences.

Exterior view of 325 Hudson

H5 Press Release on May 27, 2021:
Denver, CO - H5 Data Centers, a national colocation and carrier hotel provider, today announced its expansion to 325 Hudson, a 225,000 square-foot data center and carrier hotel in New York City. In partnership with DivcoWest, a multidisciplinary investment firm headquartered in San Francisco, H5 Data Centers will provide data center space and services in one of the world’s largest data center markets. Complimenting existing data centers in key Eastern US metros such as Ashburn, Atlanta and Cleveland, New York is H5 Data Centers’ 14th US market.

325 Hudson is a mixed-use building strategically located on the fiber-dense Hudson Street corridor on the West side of Manhattan with access to multiple Megawatts. Customers at 325 Hudson may access more than 40 unique communications networks and access the growing NetIX and DE-CIX Internet exchanges.

"New York is one of the world’s largest communications hubs," said Josh Simms, founder and CEO of H5 Data Centers. "H5 Data Centers will work with its customers to build upon the existing interconnection ecosystem at 325 Hudson, which consists of over 40 unique networks. We welcome the opportunity to serve a combination of international communications carriers, Internet exchanges and rapidly-growing segments such as content distribution networks and cloud services providers."

New York Edge Data Center Highlights:
  • 225,000 square-foot carrier hotel with access to multiple Megawatts
  • One of the key points of interconnection in New York City
  • Access to more than 40 communications carriers
  • Ability to connect to 3 independent Internet exchanges

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