JK Land Holdings Plans 360 KSF Northern Virginia Data Center

JK Land Holdings has purchased a 25.3-acre asset in Ashburn, Va., where it aims to build a 360,000-square-foot data center. Finmarc Management sold the property for $60 million. KLNB and CBRE represented the buyer and the seller, respectively.

Finmarc purchased the property in 2019 for $26.1 million, funding it with a $20.1 million loan issued by City National Bank of West Virginia, CommercialEdge data shows.

The property currently encompasses a three-story, 110,000-square-foot office building and a nearly 80,000-square-foot R&D/warehouse structure. Telos Corp. is the sole tenant, occupying the entire property since 1988. According to its most recent annual report, the lease will expire in 2029.

READ ALSO: How AI is Boosting the Data Center Market

The land is fully entitled for data center use with approval from Loudoun County. According to the filed plans, the facility will include 20 generators and a dedicated substation. However, JK Land Holdings Chairman Chuck Kuhn claimed that the company will make a final decision once Telos exits the lease, as reported by Washington Business Journal.

Located at 19886 Ashburn Road in Loudoun County, the site is some 35 miles from downtown Washington, D.C. TA Realty’s upcoming 1.9 million-square-foot data center, which the firm fully leased to a global cloud service provider last year, will operate less than 6 miles away.

KLNB Commercial Real Estate Broker and Principal Ryan Goeller represented JK Land Holdings while CBRE Vice Chairman Rob Faktorow and First Vice President Josh Greenberg alongside Vice President Anna Faktorow led the negotiations on behalf of Finmarc.

Northern Virginia continued to dominate U.S. data center sector in 2023

According to a CBRE report, Northern Virginia’s average monthly asking rates for a 250- to 500-kW requirement grew 42 percent year-over-year in 2023—outperforming all primary markets across U.S., whose rates grew on average by 18.6 percent during the same interval.

Keeping up with increasing data center demand, U.S. primary market supply grew 26 percent year-over-year in 2023, the report goes on to show. Northern Virginia’s inventory grew 17 percent during the same interval, while vacancy rose 40 basis points, to 1.4 percent in 2023, the lowest across CBRE’s primary markets.

New rules for Loudoun County data center development

As power remains undersupplied, an issue amplified by a scarcity of developable land, a new local zoning ordinance dampened Virginia’s supply pipeline further. In December 2023, Loudoun County adopted a zoning ordinance that includes changes to the approval process.

This new ordinance aims to reduce impact upon residential properties that neighbor data centers by implementing standards for soundproofing roof-tops, noise studies, limited generator testing hours, among others.

The post JK Land Holdings Plans 360 KSF Northern Virginia Data Center appeared first on Commercial Property Executive.