Lincoln Rackhouse and Principal Real Estate Investors has acquired Bytegrid, a compliant IT infrastructure company. No financial terms were disclosed.
DALLAS–(BUSINESS WIRE)–Lincoln Rackhouse, the data center division of Lincoln Property Company with over 12 years of experience helping organizations of all sizes locate, analyze and secure data center space for leasing or owning, announces that it has closed on its acquisition of Bytegrid. Bytegrid is a leading compliant IT Infrastructure company providing colocation, managed services and hosting solutions.
The acquisition, in partnership with Principal Real Estate Investors, includes all Bytegrid assets: three data centers in the Washington, D.C., Chicago and Seattle markets and the entirety of the company’s existing colocation, managed services, network and hosting business. This deal expands the Lincoln Rackhouse portfolio by 320,000 square feet and adds an additional 16MW of IT power load to achieve a total portfolio that spans 2.5 million square feet and well over 100MW across 16 locations in 14 strategic markets. Lincoln Rackhouse primarily serves as a real estate owner and property manager specializing in data centers. The acquisition of Bytegrid represents Lincoln Rackhouse’s first step into the data center and colocation operations sphere. The deal closed on May 7, 2019.
“We’re excited to expand our existing relationship and successful track record in the data center sector with Lincoln Rackhouse through this acquisition,” states Ben Wobschall, Director of Acquisitions for Principal Real Estate Investors. “Together with the team at Lincoln Rackhouse, we’ve created a proven model of strategically acquiring premium-quality data center assets and securing leases with cloud and colocation operating partners.”
As part of the acquisition, Bytegrid’s solution portfolio will be bifurcated, separating the company’s real estate assets from its service portfolio of colocation, managed services and hosting solutions. This will allow the acquired assets to be positioned for assignment to operating partners within each market across the U.S. and ensures that Lincoln Rackhouse doesn’t compete with customers across the rest of their data center portfolio.
“Bytegrid’s existing business, recurring revenues and key market presence make this an attractive opportunity for us,” adds Ryan Sullivan, Managing Director at Lincoln Rackhouse. “While our non-compete commitment to our current customers and operating partners remains, the Bytegrid acquisition is indeed all-encompassing, including the operational management and services business of three colocation sites. We do look forward to integrating these facilities into our nationwide portfolio and marketing those solutions to operators in the industry. We’re excited to further explore the interest that has been shown in these assets thus far now that we’ve closed the rather complex acquisition.”
In addition to offering robust services, the three highly-secure data centers joining the Lincoln Rackhouse portfolio possess industry-leading physical security attributes as well as industry standards for HIPAA compliance, SOC 2 Type II certification, EHNAC accreditation and more. With this acquisition, Lincoln Rackhouse can immediately offer availability to end users, cloud providers, managed and colocation service operators in the Seattle, Washington, D.C., and Chicago markets. Customers can also benefit from added space and power across these three new markets, plus an expanded presence on the West Coast.
“We have been working hard over the past two years to augment our platform and capabilities to better serve our clients across the U.S., adding several new end user and operator tenants to our roster and amping up our facilities, property management and sales teams,” notes Martin Peck, Executive Vice President of Lincoln Rackhouse. “This acquisition further underscores our dedication to growth and delivery of top-tier service, allowing us to leverage greater space and power to seamlessly meet the needs of our clients.”
Lincoln Rackhouse will continue to acquire enterprise data center facilities and anchor them with operating partners to accommodate the enterprise shift in demand for data center space and further expand its footprint.
To learn more about Lincoln Rackhouse, visit www.rackhouse.com.
About Lincoln Rackhouse
Lincoln Rackhouse, the data center division of Lincoln Property Company, owns and operates one of the nation’s most rapidly growing data center portfolios, managing over 2.5 million square feet of mission critical space across 16 U.S. markets. Leveraging Lincoln Property Company’s proven approach to successful data center facility management, Lincoln Rackhouse delivers a full-service, mission critical real estate platform and provides flexible data center solutions for the world’s top organizations. Lincoln Rackhouse offers its clients unparalleled industry knowledge, exceptional customer service anchored in honesty and transparency, and an unbiased approach to fulfilling infrastructure technology requirements. For more information, visit us at www.rackhouse.com and follow us on LinkedIn and Twitter.
About Principal Real Estate Investors
Principal Real Estate Investors manages or sub-advises $79.4 billion in commercial real estate assets (as of March 31, 2019). The firm’s real estate capabilities include both public and private equity and debt investment alternatives. Principal Real Estate Investors is a dedicated real estate group of Principal Global Investors, a diversified asset management organization and a member of the Principal Financial Group®.