Equinix Announces Land Purchase in San Jose for $38MM

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In its fourth quarter 2014 10-K report submitted to the Securities and Exchange Commission, Redwood City-based data center and storage company Equinix, Inc. announced that it had entered into a purchase agreement for real property located in San Jose in the amount of $38,309,000. As part of the January agreement, the company had deposited a non-refundable amount of $2 million and plans to close the purchase by end of this month.

The Silicon Valley Business Journal stated that the 34-acre site was sold by chip-maker Xilinix, which had owned the site since 2007 and paid roughly the same amount for which it sold the site to Equinix. The location of the site is adjacent to Santa Teresa Boulevard, between San Ignacio Avenue and Great Oaks Boulevard in San Jose.

Equinix has seven other data centers in Silicon Valley, and it is believed the site would be used to add to that capacity in the burgeoning technology region. On its Web site, the firm states that it offers clients the ability to interconnect directly to 520+ companies co-located with Equinix in the region, as well as connections to 140+ network service providers.

The company has stated recently that it is seeing increased demand for their services across the globe. Just last week the stock price for the firm hit its highest point since 2000, according to Investors.com, and one analyst saw a positive trend in the increased demand expressed through the management’s concern of being unable to deploy capacity fast enough to some markets.

Equinix is also in the process of converting into a publicly-traded REIT and is awaiting IRS approval for that process to be finalized. The expected increase in demand will shift the company’s strategy toward heavier capital investment, and this investment in the San Jose market is one of the first the company is making.

West Coast Commercial Real Estate News