Mid-Wilshire-based CIM Group has sold a portfolio of four data centers. A joint venture between Harrison Street Real Estate Capital and fifteenfortyseven Critical Systems Realty purchased the properties for an undisclosed sum.

The data centers are located in Illinois, New York and Wyoming and have a combined 560,000 square feet of space.

“Under CIM Group’s ownership, this portfolio has become stabilized and has substantially increased in value,” Avi Shemesh, co-founder and principal of CIM Group, said in a statement. “These assets benefited from CIM’s sourcing, in-house operational expertise, and the team’s focused management and ability to assess and implement property modifications and additions.” 

Two of the data centers sold were in Chicago. The larger of the two is the Midway Technology Centre at 40 E. Garfield Blvd., which is 230,000 square feet. The other is a 60,000-square-foot data center at 725 S. Wells St. Both properties connect to 350 E. Cermak, one of the area’s most connected data centers, according to CIM.

The New York property that sold is a 232,000-square-foot center located at 1 Ramland Rd. in Orangeburg. 

The last property is a 38,000-square-foot data center in Cheyenne, Wyo.

Fifteenfortyseven Critical Systems Realty was previously CIM’s partner in the portfolio. The two still have data centers in San Francisco and Toronto.

CIM is also developing a 1.5-million-square-foot data center in Utah and other campuses with partner Novva. CIM Group, according to a press release, is also still interested in acquiring more data centers.

Demand for data centers has been increasing in L.A., seeing a 25% jump in megawatt net absorption from 2019 to 2020, according to a report from Jones Lang LaSalle Inc.

The need, experts agree, comes from an increased reliance on cloud services and a large population. Data centers require large amounts of power, fiber, high ceilings and large holding weights.