Downtown Download: Data Center Provider Signs Lease at 375 Pearl Street

In an 11,000-square-foot deal for up to 1 megawatt of power, the Fortune 500 data center provider Windstream has signed a 15-year lease at 375 Pearl Street’s Intergate.Manhattan facility.

In a 15-year lease that includes expansion rights, the Little Rock, Arkansas-based data center provider Windstream Corp. has signed a lease for 11,000 square feet at Sabey Data Center Properties’ Intergate.Manhattan facility at 375 Pearl Street. Once slated for a Cook + Fox-led makeover into a Class A office building, the former Verizon Building is now a 32-story, 1 million-square-foot data center that is one of the world’s most complex of its kind, boasting 40 megawatts of data center capacity across 600,000 square feet of floor space (typical floor plates are 35,000 square feet).

Windstream is a publicly traded, Fortune 500 company. Its lease at 375 Pearl Street is for 664 kilowatts of power, which it can increase to 1 megawatt during the term of the deal (likely involving an increase in square footage too). The Intergate.Manhattan facility offers both powered shell (undeveloped, raw space with fiber-optic connectivity which the tenant builds out) and turnkey spaces (which Sabey builds or has built out). Back in April, it welcomed the New York Genome Center as its first tenant, providing it with the infrastructure to perform computing cycles for medical research. According to Crain’s, asking rents at 375 Pearl Street are in the $50s per square foot.

After purchasing 375 Pearl Street out of foreclosure, Sabey upgraded its climate, electrical, and other infrastructure systems, also spending nearly $50 million in security upgrades on top of those investments. As we suggested when we discussed the Intergate.Manhattan facility previously, and as this latest deal demonstrates, New York City’s ongoing attraction for the technology industry – and other data-hungry businesses in the financial services sector too, of course – is fueling an increasing demand for data center capacity. And, with Cornell NYC Tech and numerous other engineering and technology initiatives that the city continues to push still on the horizon, it seems likely that we’ll see more of these types of deals, soon.

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