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GI Partners refinances Los Angeles data centre at $390m

Demand for data centre space in the region has skyrocketed over the last two years which is leading to several PE deals in the state of California.

By João Marques Lima

Co-founder and Editor, The Tech Capital

4 Mins

January 12, 2022 | 7:28 PM GMT

GI Partners refinances Los Angeles data centre at $390m

One Wilshire in Los Angeles, Source: GI Partners

San Francisco’s middle-market private equity firm GI Partners has refinanced the One Wilshire carrier hotel in downtown Los Angeles.

The US$389.25 million refinancing of the 661,553-square-foot facility which comprises data centre and office space was arranged by JLL’s Capital Markets Group.

One Wilshire in Los Angeles, Source: GI Partners

JLL worked on behalf of the borrower, GI Partners, to place the 10-year, fixed-rate, non-recourse, full-term, interest-only loan with Goldman Sachs.

Loan proceeds will be used to pay-off the current loan early and repatriate a portion of the equity, the parties said.

The JLL team was led by executive managing director Kevin MacKenzie, managing director Brian Torp, director Jake Wagner and associate Samuel Godfrey with JLL’s Capital Markets group, along with brokerage support from managing director Darren Eades.

“As one of the largest internet exchanges in the world, One Wilshire is truly a best-in-class asset recognized as the premier telecommunications hub of the Western United States,” MacKenzie said.

“GI Partners has done an excellent job managing the asset to maximize utilization and creating significant value. We were able to bring together a cross-discipline team to secure the optimal results for our client, and all parties involved worked tirelessly to accomplish the goal of closing on a short time-line before year-end.”

The international telecommunications industry considers the building the most important point of connectivity between the United States and the Pacific Rim.

Standing at 30-stories tall with a façade of white marble and glass, One Wilshire is one of the largest internet exchanges in the world and the most interconnected terrestrial facility in the Western United States.

It is 89 percent leased to major interexchange and local exchange carriers, financial services companies, data communication companies and Internet service providers.

The property boasts five separate utility power risers and 13 on-site generators with fuel storage for 24 hours of operation and priority refuelling status, along with separate and redundant data risers, exceptional antenna line of sight to much of the Los Angeles basin, a multi-tower antenna array and fibre connectivity to the rooftop.

Demand for data centre space in the region has skyrocketed over the last two years.

In 2020, increased data usage, including streaming services and virtual connectivity, caused record demand for data centres, which has continued through 2021.

According to JLL Research’s most recent Data Center Outlook, the Los Angeles Data Center market absorbed 7.0 MW during the first half of 2021, a 250 percent increase over the 2.0 MW absorption levels in 2020.

JLL anticipates the demand for faster, safer and more reliable content delivery will continue to propel the Los Angeles Data Center market.

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João Marques Lima

Co-founder and Editor, The Tech Capital

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