CoreSite Plans Massive $500 Million Expansion in Reston

RESTON, VA — CoreSite Realty Corporation has snapped up the 22-acre Sunrise Technology Park as part of an expansion effort expected to run at least $150 million -- and perhaps up to $500 million in the long run. The property is about a third of a mile from CoreSite's existing buildings in Reston and represent the beginning of an ambitious expansion project.

Sunrise Technology Park currently hosts four buildings covering 315,000 square feet, but CoreSite plans on building more than 660,000 square of feet of new data center capacity on the property, according to a company statement.

CoreSite expects to close on STP in the fourth quarter of this year. CoreSite will invest $60 million initially to acquire STP, and then another $90 million to complete the first phase of the development, which would involve redeveloping 48,000 square feet of building space into data center use, and building a new 92,000 square foot data center shell, as well as another 92,000 square foot building to house centralized architecture. Phase one is expected to start in the third quarter of 2017, with completion in the second quarter of 2018.

"CoreSite anticipates continuing to invest in and scale the campus by constructing additional phases to meet customer demand and, at full build out of the new site, the company estimates that it may invest $400 - $500 million across multiple phases," the statement adds.

CoreSite operates out of two buildings in Reston making up 390,000 square feet, and with another 660,000 square feet from the full build-out of the new project, CoreSite would have a presence of more than 1 million square feet in Reston.

"CoreSite's expansion in the Reston market is an important step in the execution of our strategy to scale our business supporting performance-sensitive customer requirements across our network-dense, cloud-enabled data center platform," said Tom Ray, President and Chief Executive Officer, CoreSite. "This planned expansion to our Reston campus is designed to meaningfully scale our colocation offering in the important Northern Virginia market, leveraging off of the installed network-and-cloud capabilities already deployed at the campus. We believe that our Reston campus presents a nexus of robust, protected, low-latency network rings serving the market, while providing diversity from Ashburn. Additionally, we believe that the planned acquisition of the STP site will provide opportunities for CoreSite to continue its successful history of providing build-to-suit and wholesale data center solutions for customers with larger requirements. With the planned acquisition, we believe that CoreSite will be well-positioned for sustained growth in the important Northern Virginia market."

Image via CoreSite