Portland data center facility refinanced

PORTLAND, May 18, 2022 – JLL Capital Markets announced today that it has arranged a refinancing for Hillsboro 3, a newly constructed, state-of-the-art, 358,000-square-foot, Tier III data center in the Portland-area community of Hillsboro, Oregon.

JLL worked on behalf of the borrower, a joint venture partnership between Legacy Investing, LLC and Invesco Real Estate, a global real estate investment manager, to place the seven-year, fixed-rate, non-recourse loan with a life company.

Completed in 2021, Hillsboro 3 spans 19.77 acres at 5419 NE Starr Blvd and is leased to Flexential, a leading data center operator. The partnership between Flexential, Legacy and Invesco Real Estate enabled Flexential to quickly and efficiently bring the project to market while giving Legacy and Invesco Real Estate an excellent investment opportunity.

Hillsboro is one of the most attractive data center markets in the United States due to its proximity to Silicon Valley and a property tax abatement program. Additionally, the market offers 100% renewable energy options for power generation, offering cheaper and more competitive costs than other markets.

The JLL Capital Markets Debt Placement team representing the borrower was led by Managing Director Alex Witt, Senior Managing Director John Rose, Senior Director Carl Beardsley and Analysts Zane Coffman and Auden Menke.

“This fixed-rate life insurance company execution further demonstrates that the cost of capital for the data center asset class has reached levels more closely associated with core commercial real estate properties,” Witt said.

According to JLL Research’s recent Data Center Outlook, data center demand reached new heights in 2021. In the United States alone, absorption reached a mammoth total of 885.7 MW across 14 domestic markets, with no signs of slowing down.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Founded by seasoned technology company executives, Legacy focuses on mission-critical real estate being fundamentally impacted by new technologies: digital and physical supply chains, future workplaces and life sciences.

Legacy’s principals have leveraged this platform, as well as their public company C-level experience, across the past two decades to complete over $2.75 billion in transactions across 19 million square feet of data centers, e-commerce distribution centers, modern office buildings and life sciences facilities on behalf of a select set of family office and institutional investors. Legacy leverages its expertise in how technology is and will be impacting tenant demand, site selection and leasing to target and position properties to meet those needs, thereby capturing long-term real estate value.

Legacy invests in core+, value-add and opportunistic investments across the U.S. with individual investments ranging from $15M to $100M+. legacyinvesting.com

Invesco Real Estate is a global leader in the real estate investment management business with $91.8 billion in real estate assets under management, 582 employees and 21 regional offices across the U.S., Europe and Asia (as of December 31, 2021). Invesco Real Estate was established in 1983 and today invests across the risk return spectrum, from core to opportunistic; in equity and debt; listed and direct; locally and globally. Invesco Real Estate is a business name of Invesco Advisers, Inc., an indirect, wholly owned subsidiary of Invesco Ltd. Invesco Ltd. is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ; invesco.com.