Patrick Soon-Shiang’s Nantworks, Serverfarm buy El Segundo data center

$71M deal closes; Complex will also be Serverfarm’s new HQ

Los Angeles /
Apr.April 26, 2021 10:15 AM
Patrick Soon-Shiong and 444 N. Nash Street (Getty, Google Maps)
Patrick Soon-Shiong and 444 N. Nash Street (Getty, Google Maps)

Data center operator Serverfarm has teamed up with Patrick Soon-Shiong’s Nantworks to pay $71 million for a data center in El Segundo.

The 117,500-square-foot facility at 444 N. Nash Street will also be Severfarm’s headquarters, according to the Los Angeles Business Journal. The seller was T5 Data Centers, according to the report.

Soon-Shiong — who owns the Los Angeles Times — founded Culver City-based Nantworks, a biotechnology company. Nantworks owns other properties in El Segundo, where Soon-Shiong moved the newspaper to in 2018.

Serverfarm owns around 100 data centers in roughly 40 countries worldwide. The firm typically acquires and upgrades properties with modern infrastructure. Virtual storage and server space at data centers are leased like space in an office building, and upgrading can significantly increase capacity and performance.

The Nash street property was about 80 percent leased at the time of the sale to a number of tenants, including those in the transport and health care industries, as well as government agencies.

Demand for data center space has largely correlated with the growth of the internet economy. Demand fell last year as large companies froze their IT budgets, but 2020 was still the second-best year on record for leasing.

Some analysts predict 2021 will be one of the strongest ever in terms of demand and industry growth. The advent of 5G technology is also expected to boost demand, which should tick up particularly in secondary markets with limited supply.

[LABJ] — Dennis Lynch 


Related Articles

arrow_forward_ios
From left: DirecTV's Bill Morrow and Kilroy Realty's John Kilroy with 2250 East Imperial Highway
Kilroy settles with AT&T over DirecTV HQ in El Segundo
Kilroy settles with AT&T over DirecTV HQ in El Segundo
L.A. Times owner Dr. Patrick Soon-Shiong and the Angels Stadium at 2000 E. Gene Autry Way in Anaheim (Getty, MLB)
LA Times’ owner Soon-Shiong ponders bid for Angels
LA Times’ owner Soon-Shiong ponders bid for Angels
DiNapoli Capital Partners' F. Matthew DiNapoli, Park Hotels and Resorts' Thomas Baltimore and Hilton Garden Inn El Segundo (DiNapoli Capital Partners, Park Hotels and Resorts, Hilton)
Park Hotels in deal to sell Hilton Garden Inn near LAX
Park Hotels in deal to sell Hilton Garden Inn near LAX
Panattoni Development's Carl Panattoni and Rivian's R.J. Scaringe with 1441 Myford Road (Panattoni Development, Getty, Google Maps)
Rivian leases 219K sf building under construction in Tustin
Rivian leases 219K sf building under construction in Tustin
FS Investments' Michael Forman and Tishman Speyer's Rob Speyer with 555 South Aviation Boulevard (Tishman Speyer, LoopNet, iStock)
Tishman Speyer notches priciest LA office sale of year
Tishman Speyer notches priciest LA office sale of year
Planned LA Chargers HQ scores financing package
Planned LA Chargers HQ scores financing package
Planned LA Chargers HQ scores financing package
(iStock)
Demand up sharply, pipeline full for data centers: CBRE
Demand up sharply, pipeline full for data centers: CBRE
Rendering of 1550 E. Franklin Ave. (Ware Malcomb, iStock)
Ocean West Capital buys 152K sf industrial campus in El Segundo
Ocean West Capital buys 152K sf industrial campus in El Segundo
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...