As part of its ongoing real estate advisory work for one of the world's largest investment banks, Newmark Knight Frank entered and studied the market for a new data center to support its client's New York metropolitan area operations. The building or site needed to be suitable for conversion into a primary data center, and be within 40 miles of the client's headquarters in Downtown Manhattan.

In addition to the location parameters, which were necessary to allow for synchronous data transmission from the headquarters to the data center, the site needed to have access to an extensive power supply and telecommunications resources. While analyzing the market for a suitable site, Newmark Knight Frank uncovered a 200,000-square-foot existing data center, securely sited on 16 acres in Central New Jersey, which was leased to Genuity Inc., a major telecommunications provider.

The facility contained extraordinary infrastructure (multiple power sources, emergency generator farm, cooling plants, internal telecom nodes, etc.) that optimally met the client’s needs. As a result of extensive due diligence and a creative approach, Newmark Knight Frank discovered that Genuity’s declining financial condition could create a unique opportunity. The Newmark Knight Frank team crafted a unique purchase agreement for the property that would be contingent upon Genuity vacating, and also required Genuity to leave behind its existing infrastructure and equipment.

When Genuity dissolved, Newmark Knight Frank secured the property for its client, complete with the existing installation and equipment, for use as a new data center. Although some of the infrastructure and technology needed to be upgraded by the client, by utilizing creative strategies coupled with rigorous research and analysis, Newmark Knight Frank achieved savings/capital expenditure avoidance of more than $85 million for its client in a single transaction.