Developer Buys Silver Spring Data Center For $29M: The D.C. Deal Sheet
A Washington, D.C.-area data center outside of Virginia's Data Center Alley has traded hands, and the new owner is planning to increase its output.
St. Louis-based developer Sansone Group and data center company Priseda acquired the 214K SF data center at 12401 Prosperity Drive in an off-market sale, the groups announced this week. Priseda is a tenant at the property.
The price was $28.8M, according to a deed posted in Maryland property records.
The new owners are planning upgrades, including expanding the power capacity to 100 megawatts.
“This acquisition marks a pivotal moment for Sansone Group,” principal Nick Sansone said in the release. “As we continue to scale our platform, further expanding into the data center space allows us to align with major macroeconomic trends and meet the needs of today’s most innovative users.”
Principal Asset Management, the apparent seller, purchased the data center in 2019 for $19.5M, according to property records, which indicated the building's assessed value was $33.8M.
Property records also show the property was built in 2009. The data center is Tier 4, meaning that it was designed to be fault-tolerant. Sansone and Priseda will provide property management services.
Poverni Sheikh Group provided debt financing for the sale, which was sourced by JLL Capital Markets.
SALES
UDLR Partners purchased a 56K SF medical outpatient building on the University of Maryland Laurel Medical Center campus. CBRE brokered the deal and announced the sale, but a spokesperson declined to disclose the price. Catalyst Healthcare Real Estate was the seller. The property at 7140 Contee Road, which delivered in the spring of last year, is anchored by the University of Maryland Medical System. It is 81% occupied.
CBRE’s Chris Bodnar, Brannan Knott, Mindy Berman, Zack Holderman, Cole Reethof, Jesse Greshin and Tim Connolly advised the seller.
MILESTONES
Jefferson Apartment Group on Thursday put the final building block atop its 422-unit Rosslyn apartment project, J Rivelle. The two-tower project at 1901 N. Moore St. is the mixed-use redevelopment of the former RCA Building. JAG is developing J Rivelle in a joint venture with Mitsui Fudosan America. Demolition started in December 2022, and the project is expected to deliver next spring.
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Logistics Property Co. broke ground this week on a 270K SF logistics center just off I-95 in Beltsville, Maryland. Beltsville Logistics Center, a two-building project at 6500 and 6600 Muirkirk Road, is Logistics Property Co.’s first in the D.C. area. FCL Builders is the general contractor. Powers Brown Architecture is the architect. LJB Engineering is the structural engineer, and Salas O’Brien is the mechanical, electrical and plumbing engineer. Delivery is projected for the third quarter of 2026.
FINANCING
Development team Middleburg Communities and Capital City Real Estate secured a $60M construction loan from CIBC Bank USA for a planned Fairfax apartment development. The financing will be paired with a $40M equity investment from the developers and an unnamed partner to construct The Botanist, a 260-unit project at 10350 Eaton Place. The development site is a parking lot next to the 1980s-era WillowWood Plaza office park.
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JBG Smith’s workforce housing investment vehicle, Leo Impact Capital, made a preferred equity investment in a 118-unit Arlington apartment building to preserve its affordability, the REIT announced this week.
Insight Property Group owns the garden-style residential community, Haven Columbia Pike, at 805 S. Florida St. The investment, the dollar value of which a spokesperson for the REIT declined to provide, allows the owner to recapitalize the property, fund capital improvements and dedicate all the units to families making 60% of the area median income or less.
