Disparity in Data Center Pricing, Birch Sees Upside in New Jersey Buy, Asia Capital Funds Multifamily Deals

Adding It All Up: At first blush, California technology-focused real estate firm Menlo Equities’ $109 million deal to acquire four data center sites in its Silicon Valley backyard seems to have been a real bargain. Three of the four properties backed a loan divvied out among six different CMBS deals in 2018 and 2019. The three properties at 4650 Old Ironsides Drive and 4700 Old Ironsides Drive in Santa Clara and 444 Toyama Drive in Sunnyvale cost Menlo $93.2 million, CoStar data shows. They were appraised at $131 million three years ago. Menlo’s purchase price represents a nearly 29% discount.