Feb 02, 2023 | Posted by Abdul-Rahman Oladimeji
Following a bankruptcy filing, a recently converted data center is for auction. This week, Hilco Real Estate declared March 23, 2023, as the deadline for qualifying bids for the Chapter 11 bankruptcy sale of a newly converted flex industrial facility into a data center. Built in 2018 on a 13.7-acre property at 9100 NW US Highway 287 in Tarrant County, the 49,000 sq ft building has 22 drive-through doors, two cargo docks, 18' – 26' warehouse clearance heights, and a two-story office area that 'offers shared workplace versatility.'
The warehouse part of the building received 'major modifications' worth $6.7 million to become a 10MW data center, according to Hilco. The existing structure occupies around 7 acres, but an additional 6.6 acres have been cleared for potential development. Terry Rochford, executive vice president of corporate development at Hilco Real Estate, stated that they believe this real estate will drum up considerable interest from both data center users, whose demand has become nearly insatiable in recent years, and a wide range of last mile logistics consumers in need of a facility in this region of rapid expansion. When they combine this with the security of the bankruptcy sale procedure, he said, they have a very tempting proposal.
The property was once held by MKS Real Estate, which recently filed for bankruptcy. Included among its creditors was Westdale Capital Investors 3.
The sale is being performed by order of the United States Bankruptcy Court for the Northern District of Texas (Fort Worth), Bankruptcy Case No. 22-42618-ELM11, In RE MKS Real Estate, LLC, subject to court permission.
