Data By The Loop

The soon-to-be second largest data center in Chicago (occupied by Northern Trust) will be developed into a multi-tenant facility. The 840 S. Canal facility sold for $33M and will undergo a $170M conversion.
 
The building currently has 38 megawatts of power and connectivityfrom 10 different telcom cariers. Op2mize's Geoff Kasselman and Thomas Bueltmann and Newmark Knight Frank'sBryan Loewen repped the buyer, Red Sea Group and Server Farm Realty. The seller, Northern Trust, was repped by JLL's Craig McKesson, Michael Sessa, and Dan Maslauski. The 443k SF, eight-story building is just outside of the Loop, which means it'll be able to provide fast connectivity to any of its tenants. Geoff tells us they worked out a timeline with Northern Trust to vacate little by little and allow the new developer to start building out spaces as they become available. CBRE will market those spaces for lease. The facility will be the second biggest multi-tenant data center in Chicago.
Northern Trust owned the building since 2000 and has used it for data center and back-office. The building was originally developed as aGeneral Electric manufacturing center in the '40s, so the new developers saw the opportunity to rebuild it as a data center due to its heavy floor loads and power capabilities. The roughly five-acre site also includes parking for more than 340 cars. The deal was part of a 1031 exchange where the buyer sold other properties to invest the profits in the current sale. The data center will be one of just a few located near the Loop, where there's much more demand than supply in power centers, Geoff says.

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