In 2013, GI Partners and CalPERS bought the 2 Peekay Drive building in Clifton, New Jersey, that housed Telx’s NJR3 data center. The reported price was $53.9 million for a 215,000-square-foot property. Telx was not acquired in that transaction: it remained the building’s long-term exclusive tenant and day-to-day operator.
What GI Partners acquired
Data Center Knowledge reported on November 5, 2013, that Mountain Development Corp. sold the recently completed building at 2 Peekay Drive, Clifton, New Jersey, to GI Partners and the California Public Employees’ Retirement System (CalPERS). The sale closed in early October 2013.
The property was identified as NJR3, with a reported area of 215,000 square feet. These are historical figures from the 2013 report, not current specifications or a current valuation.
Telx executive Ron Sterbenz described the transaction as a financing transaction for Telx and said it did not change NJR3’s operational arrangements.
#1 Best Overall
Ownership changed; operations did not
The key distinction is between the real estate and the data-center business operating inside it:
| Element | What the 2013 report says |
|---|---|
| Building | 2 Peekay Drive, Clifton, New Jersey |
| Reported facility name | NJR3 |
| Seller | Mountain Development Corp. |
| Reported buyers | GI Partners and CalPERS |
| Reported price | $53.9 million |
| Reported size | 215,000 square feet |
| Tenant and operator after the sale | Telx, as long-term exclusive tenant and operator |
Sterbenz said: “Although GI Partners’ investment vehicle is 2 Peekay’s owner and landlord, Telx is the long-term exclusive tenant and in complete control of the day-to-day operations of the building.” In practical terms, GI Partners’ investment vehicle became the landlord while Telx continued running the facility.
Rank #2
- Ideal for Gifting
- Ideal for a bookworm
- Compact for travelling
The Clifton campus included another building
NJR3 was part of a two-building Clifton campus. The adjacent building at 100 Delawanna was a separate property. Data Center Knowledge reported that Telx still owned 100 Delawanna at the time of the Peekay Drive sale.
That campus detail matters: the $53.9 million transaction concerned the 2 Peekay Drive building, not an acquisition of every property associated with Telx’s Clifton presence.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
Why the 2011 Telx sale is often confused with the 2013 property sale
GI Partners had previously owned the Telx operating company. GI Partners’ August 8, 2011 announcement said it was selling The Telx Group to ABRY Partners and Berkshire Partners; the announcement did not disclose terms.
| Date | Transaction | Asset involved |
|---|---|---|
| 2006 | GI Partners acquired Telx, according to GI Partners’ later announcement. | The Telx operating company |
| August 8, 2011 | GI Partners announced the sale of The Telx Group to ABRY Partners and Berkshire Partners. | The Telx operating company |
| Early October 2013 | The Clifton building sale closed. | 2 Peekay Drive, the building housing NJR3 |
| November 5, 2013 | Data Center Knowledge published its account of the Clifton sale. | Historical transaction report |
Therefore, “GI Partners acquired Telx in 2013” is incorrect. The 2013 event was a real-estate ownership change involving the building in which Telx operated NJR3.
Rank #4
What the reported price does—and does not—mean
The reported $53.9 million was the purchase price for the Clifton building. It was not the value of Telx, the value of the entire Clifton campus, or a stated valuation of NJR3’s operating business.
Data Center Knowledge also reported that GI Partners’ TechCore fund, managed on behalf of CalPERS, had approximately $500 million in discretionary core real-estate capital and targeted data centers, internet gateways, corporate technology campuses and life-science properties. That figure describes the fund’s reported size and strategy; it is not the NJR3 purchase price.
PC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Outdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchBest Value
- It can be a gift option
- Comes with secure packaging
- Helpful in various ways
What is not established about NJR3 today
The contemporary sources establish the 2013 sale and the operating arrangement at that time. They do not establish the property’s current owner, current operator, whether the historical Telx lease remains in force, the facility’s current name or configuration, or its current size and value. A later GI Partners announcement about a 2018 acquisition at 492 River Road in Nutley, leased by BT Americas, concerns a different New Jersey property and should not be used to update the Clifton facts.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
