CoreSite to Expand Northern Virginia Campus
August 11 2016 - 5:15PM
Business Wire
CoreSite executed agreement to purchase Sunrise
Technology Park for further expansion to meet customer demand in
Reston, Virginia
CoreSite Realty Corporation (NYSE:COR), a provider of secure,
reliable, high-performance data center and interconnection
solutions across the U.S., today announced that it is under binding
agreement to expand its Reston campus with the planned purchase of
the Sunrise Technology Park (STP), a 21.75-acre light-industrial /
flex office park 0.3 miles from CoreSite’s existing VA1 and VA2
buildings.
The STP site currently hosts four buildings totaling 315,000
square feet. Based upon its expectations regarding entitlements for
the campus, CoreSite estimates that it could build over 660,000
square feet of new data center capacity across multiple phases on
the new parcel. CoreSite anticipates closing on the acquisition of
STP in the fourth quarter of 2016. CoreSite expects to invest $60
million plus transaction costs to acquire STP, followed by an
additional $90 million to complete Phase 1 of the master-planned
development. CoreSite anticipates that Phase 1 will be comprised of
a) redeveloping an existing 48,000 square-foot industrial building
to data center use, b) building a ground-up 92,000 square-foot data
center shell, and c) building a 92,000 square-foot structure to
house centralized infrastructure intended to support needs across
the planned full buildout of the campus. CoreSite expects to begin
construction of Phase 1 during the third quarter of 2017, and
substantially complete that Phase in the second quarter of 2018.
CoreSite anticipates continuing to invest in and scale the campus
by constructing additional phases to meet customer demand and, at
full build out of the new site, the company estimates that it may
invest $400 - $500 million across multiple phases.
Currently, CoreSite's Reston campus includes two facilities
totaling over 390,000 square feet of turn-key data center capacity.
Construction of all 660,000 square feet of new capacity envisioned
by CoreSite at the STP expansion would increase CoreSite’s capacity
at its Reston campus to over 1 million square feet, or 2.7x its
current size, extending CoreSite’s position as a leading MTDC
provider in Northern Virginia, the world’s largest data center
market. In investing in the planned expansion, CoreSite intends to
leverage off of the strong position it has established at its
Reston campus with over 175 customers, including 35 networks and
over 50 cloud and IT service providers. CoreSite believes its
Reston campus represents a leading cloud hub in Northern Virginia,
including hosting AWS Direct Connect in addition to other leading
cloud service providers. In addition to its cloud capabilities,
CoreSite’s Reston colocation campus provides direct, low-latency
network access to and from CoreSite’s data center in
Washington, D.C. and key network access points along the Eastern
Seaboard, enabling networks, cloud providers, and enterprises to
scale, improve performance, and reduce costs.
"CoreSite's expansion in the Reston market is an important step
in the execution of our strategy to scale our business supporting
performance-sensitive customer requirements across our
network-dense, cloud-enabled data center platform," said Tom Ray,
President and Chief Executive Officer, CoreSite. "This planned
expansion to our Reston campus is designed to meaningfully scale
our colocation offering in the important Northern Virginia market,
leveraging off of the installed network-and-cloud capabilities
already deployed at the campus. We believe that our Reston campus
presents a nexus of robust, protected, low-latency network rings
serving the market, while providing diversity from Ashburn.
Additionally, we believe that the planned acquisition of the STP
site will provide opportunities for CoreSite to continue its
successful history of providing build-to-suit and wholesale data
center solutions for customers with larger requirements. With the
planned acquisition, we believe that CoreSite will be
well-positioned for sustained growth in the important Northern
Virginia market."
About CoreSite
CoreSite Realty Corporation (NYSE:COR) delivers secure,
reliable, high-performance data center and interconnection
solutions to a growing customer ecosystem across eight key North
American markets. More than 900 of the world’s leading enterprises,
network operators, cloud providers, and supporting service
providers choose CoreSite to connect, protect and optimize their
performance-sensitive data, applications and computing workloads.
Our scalable, flexible solutions and 350+ dedicated employees
consistently deliver unmatched data center options — all of which
leads to a best-in-class customer experience and lasting
relationships. For more information, visit www.CoreSite.com.
Forward-Looking Statements
This press release may contain forward-looking statements within
the meaning of the federal securities laws. Forward-looking
statements relate to expectations, beliefs, projections, future
plans and strategies, anticipated events or trends and similar
expressions concerning matters that are not historical facts. In
some cases, you can identify forward-looking statements by the use
of forward-looking terminology such as "believes," "expects,"
"may," "will," "should," "seeks," "approximately," "intends,"
"plans," "pro forma," "estimates" or "anticipates" or the negative
of these words and phrases or similar words or phrases that are
predictions of or indicate future events or trends and that do not
relate solely to historical matters. Forward-looking statements
involve known and unknown risks, uncertainties, assumptions and
contingencies, many of which are beyond CoreSite's control that may
cause actual results to differ significantly from those expressed
in any forward-looking statement. These risks include, without
limitation: any adverse developments in local economic conditions
or the demand for data center space in these markets; operational
difficulties, including difficulties relating to information
systems, internal processes and information security; significant
industry competition; financial market fluctuations; and other
factors affecting the real estate industry generally. All
forward-looking statements reflect CoreSite's good faith beliefs,
assumptions and expectations, but they are not guarantees of future
performance. Furthermore, CoreSite disclaims any obligation to
publicly update or revise any forward-looking statement to reflect
changes in underlying assumptions or factors, of new information,
data or methods, future events or other changes. For a further
discussion of these and other factors that could cause CoreSite's
future results to differ materially from any forward-looking
statements, see the section entitled "Risk Factors" in CoreSite's
most recent annual report on Form 10-K, and other risks described
in documents subsequently filed by CoreSite from time to time with
the Securities and Exchange Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20160811006019/en/
CoreSiteGreer Aviv, 303-405-1012Vice President of
Investor Relations and Media/Public
RelationsGreer.Aviv@CoreSite.com
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