Lightstone, a real estate investor, developer and sponsor of alternative direct investments, has launched a new platform to purchase telecommunications and technology real estate assets. With an initial allocation of $300 million, the platform will focus on acquiring existing but underutilized data centers and telecom infrastructure, existing technology-related real estate, and new development opportunities.
“As the use of cloud-based data skyrockets and growth of cloud platforms like Amazon and Google continues, there is overwhelming need for large-scale data center facilities that can support these providers and services,” said David Lichtenstein, CEO of Lightstone. “We’ve launched the platform to capitalize on the opportunity to meet this demand.”
Lightstone’s platform will focus on both primary and secondary markets, including potential expansion into European markets. The company’s investments will encompass underutilized data center facilities with anchor tenant sales and leasebacks from large enterprise companies, existing technology-related real estate that can support additional leases, and new development opportunities presented by the growth of tech giants and cloud providers.
In January 2019, the platform closed on its first development site, acquiring 2175 Martin Avenue in Santa Clara, California. The site will be a three-story, 88,000 square foot data center and is expected to be delivered as soon as early 2021.
Christopher Flynn was named president of Lightstone Data Fund and will manage the fund and its technology-based assets. Flynn has more than 20 years of experience in the data real estate sector and a record of building data centers for EdgeConnex in 35 global locations, the company said.
In other company news, Lightstone recently partnered with wealth management consulting firm The PKS Group, to purchase and develop real estate projects located within designated opportunity zones, the first of which is a 203-key Marriott Moxy hotel in Williamsburg, Brooklyn. PKS is led by Peter Scaturro, the former CEO of U.S. Trust and partner at Goldman Sachs Private Wealth Management.
Headquartered in New York City, Lightstone is a privately held real estate company that invests in residential, hospitality, commercial, and retail properties, and owns a $6 billion portfolio comprised of 178 properties. The firm also claims to have more than $3.5 billion currently under development in the residential and hospitality sectors spread across New York City, Los Angeles, and Miami.