Strategic Capital Fund Management Buys Data Center Near Atlanta for $80 Million

Strategic Datasphere LLC, the data center investment platform of Strategic Capital Fund Management, has purchased a Tier IV equivalent data center located in the Atlanta suburb of Alpharetta, Georgia.

Strategic Capital Fund Management, an alternative investment product sponsor focused on digital economy investments, reported that its data center investment platform, Strategic Datasphere LLC, has purchased a data center located in the Atlanta suburb of Alpharetta, Georgia for $80 million.

Greater Atlanta area is the nation’s seventh largest data center market, and according to the company, has a number of “appealing characteristics” such as low energy and operating costs, state and local tax incentives, and is a “strong connectivity hub.”

Built in 1999 for a financial services company and renovated in 2008 and 2020, the 165,000-square-foot facility is 100 percent leased to two tenants and is located in a data center corridor that serves enterprise users and colocation operators.

The property has 5.4 megawatts of 2N critical capacity that can be expanded to 8.1 megawatts at N+1. The property also has land available for another 140,000-square-foot data center development if the tenants seek to grow their presence beyond the existing building footprint.

“We believe this is a rare opportunity to acquire a purpose-built data center with investment grade in-place cash flow along with a strong value-add repositioning opportunity as a multi-tenant colocation facility in a tier 1 data center market,” said Bryan Marsh, chief executive officer of Strategic Datasphere.

The seller was Legacy Investing LLC, a Virginia-based company focused on mission-critical real estate. Financing for the transaction was provided by Sunflower Bank N.A.

Strategic Capital created Strategic Datasphere last September to purchase, develop and manage fully and partially stabilized data center facilities across North America and Europe.

At the time of its launch, Datasphere reportedly received initial commitments of up to $500 million from its U.S.-based investment partner, which is expected to support more than $1.5 billion of data center investments alongside debt financing.

Headquartered in Greenwich, Connecticut, Strategic Capital Fund Management is a private alternative asset management organization focused on digital economy investments with an emphasis on digital infrastructure, sustainability, and technology-centric sectors.

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