Equinix: Sobrato sells Equinix-leased Silicon Valley data facility to Invesco for $86 million

Jun 22, 2023 | Posted by Abdul-Rahman Oladimeji

Invesco has purchased a data center in San Jose, California, run by Equinix. Mercury News reports that the Sobrato Organization recently sold 1735 Lundy Avenue in San Jose to Invesco Real Estate for $86.3 million, citing documents from Santa Clara County.

The single-story building encompasses 103,000 square feet and is situated on 6.7 acres. It is leased to Equinix, which operates its SV3 data center on the property. The facility offers approximately 4.6MW of power and 54,488 square feet of raised floor space. In 2004 for $900,000, Equinix purchased the data center from AboveNet Communications Inc. Additionally, it took over AboveNet's lease on the property, which began in 2000 and at the time had a term of 2020 with the possibility of an extension, per records kept on file with the Clerk-Recorder's office.

Sobrato, a Silicon Valley real estate development and investment firm founded in the late 1970s, reportedly purchased the property for an undisclosed amount in 2010. However, Sobrato has possessed the property since the 1980s.

Invesco and Legacy Investing have previously acquired Flexential data centers in Plano, Texas, and Hillsboro, Oregon, through sale-leaseback transactions.