New Data Hub Being Developed in Manhattan

Several experienced players in the Manhattan data center sector are developing new space at 325 Hudson Street, providing another new project in a busy year for the New York market.

Rich Miller

October 22, 2012

3 Min Read
New Data Hub Being Developed in Manhattan


325 Hudson Street, which already has several telecom tenants, is being redeveloped to add data center and interconnection space. (Photo: Jamestown Properties)

Several experienced players in the Manhattan data center sector are developing new space at 325 Hudson Street, providing another new project in a busy year for the New York market. Jamestown Properties and Amerimar Enterprises, which bought the property earlier this year, will team with telecom industry veteran Hunter Newby to create a carrier-neutral interconnection facility to anchor a new phase of data center development at the building, where Verizon and Level 3 are existing tenants.

Jamestown previously owned one of the city's primary carrier hotels, 111 8th Avenue, before selling it to Google for nearly $2 billion in 2010. Newby helped build the the Telx Group’s interconnection business at the 60 Hudson Street carrier hotel in Manhattan. Amerimar specializes in redeveloping and repositioning real estate assets, with its projects including the data center hub at 1500 Spring Garden in Philadelphia.

325 Hudson Street is a 10-story, 240,000-square-foot telecom building located in New York City’s Hudson Square area. The building has direct access to transatlantic cables and major metro and regional fiber providers. The first phase of the development will include cage and cabinet spaces as well as a large Meet Me Area where customers will have the opportunity to make physical interconnections with one another.

A "Legacy of Innovation" in NYC

“With New York City’s rising demand for connectivity driven by Internet services and application development, Jamestown is proud to draw on the legacy of innovation in this space that began with our investments at 111 8th Avenue and Chelsea Market,” said Michael Phillips, COO of Jamestown. "With our partners Amerimar and Hunter Newby, experts in technology-oriented real estate and telecom, we are excited to offer a state-of-the-art new product to our customers at a great value."

A former industrial building, 325 Hudson was redeveloped in 1998 into a telecom center. In April the partnership of Jamestown and Amerimar bought the facility from Young Woo & Associates and the Bristol Group, with a reported sale price of $110 million. The building offers heavy floor loading capacity, 12-foot ceilings, as well as robust HVAC, power, and back-up power supply.

The new space at 325 Hudson comes amid a flurry of data center development in Manhattan, The new projects include:

  • Intergate.Manhattan: Sabey Data Centers is redeveloping the former Verizon building at 375 Pearl Street to bring new data center space to lower Manhattan.

  • DataGryd: This new player in the Manhattan market is developing up to 240,000 square feet of data center space within 60 Hudson Street, and is working with the landlord to update the building's power infrastructure.

  • Telehouse Chelsea: Last year the veteran players in the New York market acquired a 60,000 foot space at 85 10th Avenue, which previosuly was a Lehman Brothers facility.

  • Data Center NYC: This group is working closely with Atlantic Metro to redevelop seven floors of data center and telecom space at at 121 Varick Street.

The owners of 325 Hudson Street note that the building and its Meet Me Room will be under the same ownership and management, with "a commitment to no monthly recurring cross connect fees.

"The initial response from the carrier community has been overwhelmingly positive and we look forward to continuing to sign up new customers as we forge ahead to a Spring 2013 completion of the first phase of our expanded Meet Me Room," said Jerry Marshall, President and CEO of Amerimar.

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