1547 acquires the Pittock Block in Portland

1547 Critical Systems Realty has acquired the Pittock Block, a Portland carrier hotel from the Alco Investment Company.

Don't call it a trend, but 1547 has targeted a couple of acquisitions that focus on carrier dense data centers. Last September 1547 acquired a Milwaukee carrier hotel, the Wells Building.

In 1986, Alco acquired the Pittock building as a distressed asset. Shortly after, several long-distance companies expressed interest in leasing space at the building due to its proximity to one of the major telecom companies, whose regional switching hub was located near the building, making the Pittock Block the primary neutral cross-connection point in Portland.

1547 Press Release on Jan 4, 2021:

PORTLAND, OR and CHICAGO, IL – Harrison Street, pursuing its digital infrastructure strategy, and 1547 Data Center Real Estate Fund II, LP, an affiliate of fifteenfortyseven Critical Systems Realty, LLC (“1547”), announced today the acquisition of the historic Pittock Block building, a vital carrier hotel, colocation data center and office building located in downtown Portland, Oregon.

The 302,200 square foot building is one of the most connected buildings in the United States, serving 179 service providers, and is one of only two primary Internet Exchanges in the entire Northwest. Additionally, Hillsboro, located 18 miles to the west of the property and home to Intel, is one of the fastest growing data center submarkets in the world, further fueling growth within Pittock Block.

“Strategically located with direct access to seven subsea telecommunications cables, Pittock Block is a premier telecommunications Internet Exchange for the West Coast and represents the type of asset we are seeking to add to our connectivity-focused platform with Harrison Street,” said J. Todd Raymond, CEO of 1547. “We believe there is significant opportunity at Pittock as data center requirements continue to grow exponentially in the region. Our plan is to leverage the strong foundation built by the Pittock Block team and immediately expand data center and co-location capacity while simultaneously investing further into the building’s security and world-class meet-me-room.”

Michael Hochanadel, Managing Director and Head of Digital Real Estate at Harrison Street, said, “Pittock Block represents a rare opportunity to acquire an established interconnection building with significant opportunity for growth. The Pacific Northwest continues to be a top destination for end users seeking highly connected data center capacity given its robust telecommunication infrastructure that provides low latency to key high growth markets including Asia. We are excited to expand our partnership with 1547 and acquire a highly strategic facility that will enhance our ability to deliver robust connectivity solutions. We look forward to continuing to identify and invest in critical digital assets.”

Pittock Block is the second investment for Harrison Street and 1547 following the acquisition of the historic Wells Building, a carrier hotel and data center located in Milwaukee, Wisconsin. The acquisition is Harrison Street’s second carrier dense data center investment. Harrison Street has committed approximately $1 billion in digital infrastructure projects since 2018.