JLL raises over $1.2b of construction financing in Northern Virginia for data center developer, The BlackChamber Group

Rhea-AI Summary

JLL Capital Markets has successfully arranged over $1.2 billion in construction financing throughout 2024 for The BlackChamber Group's data center development projects in Northern Virginia. The financing will support the development of four hyperscale powered shell campuses with a combined capacity of over 740 megawatts.

BlackChamber's Northern Virginia portfolio includes eight campuses with potential to reach 1.5 GW of gross power capacity across more than six million square feet. Northern Virginia, the world's largest data center market, has over 4.6 GWs of power capacity as of 1H 2024, with more than 1.3 GWs absorbed in 2024 and a remarkably low vacancy rate of 0.4%. The region currently has over 5.8 GWs of planned data center development.

The financing arrangements involved various capital sources, including bank balance sheets, commercial real estate and infrastructure verticals, and private credit vehicles funded with insurance company capital.

Positive

• Secured substantial $1.2B in construction financing for data center development
• Project portfolio includes 740 megawatts of capacity across four campuses
• Operating in Northern Virginia market with extremely low 0.4% vacancy rate
• Strong market demand from Cloud, AI, and Enterprise tenants

Negative

• None.

News Market Reaction

+6.55%

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+6.55% News Effect

On the day this news was published, JLL gained 6.55%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

WASHINGTON, Jan. 15, 2025 /PRNewswire/ -- JLL's Capital Markets group announced today that it arranged over $1.2 billion in construction financing throughout 2024 on behalf of The BlackChamber Group ("BlackChamber"). The financings will facilitate the development of four hyperscale powered shell campuses located across Northern Virginia collectively totalling over 740 megawatts of capacity.   

JLL worked on behalf of BlackChamber to arrange the financings as part of BlackChamber's Northern Virginia development portfolio, which includes eight campuses with the prospective capacity to yield nearly 1.5 GW of gross power capacity across more than six million square feet.

BlackChamber was advised by JLL's Capital Markets Debt Advisory team led by Jamie Leachman, Senior Managing Director and Co-Head of the Washington, D.C. office and Drake Greer, Senior Director and member of JLL's National Data Center Capital Markets team.

"Against a dynamic and challenging market backdrop, JLL leveraged their relationships, creativity and expertise to drive seamless and unrelenting execution with a variety of different lenders, ultimately delivering value-accretive and strategically beneficial financing solutions," BlackChamber Managing Partner Conley Patton said.

Northern Virginia is the largest data center market in the world, comprising more than 4.6 GWs of power capacity as of 1H 2024. In 2024, Northern Virginia saw more than 1.3 GWs of absorption, ending the year with a vacancy rate of just 0.4%. Currently, in Northern Virginia there is more than 5.8 GWs of planned data center development.    

"We are seeing incredible demand for data centers with the consistent appetite from Cloud, AI and Enterprise tenants and this in turn has created a larger focus from various capital sources," Leachman said.

"What was once a small alternative segment of the commercial real estate industry is now a large segment of equity and debt deployments. BlackChamber's recent construction loan closings are evidence of the diverse capital chasing data centers. Our recent closings include capital from bank balance sheets, both commercial real estate and infrastructure verticals, but also private credit vehicles funded with insurance company capital," Greer added.

JLL's dedicated Capital Markets group is a full-service global provider of capital solutions for real estate and infrastructure investors and occupiers. The group's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The National Data Center Capital Markets team is run by Senior Managing Director Carl Beardsley.

For more news, videos and research resources, please visit JLL's newsroom. 

About BlackChamber
The BlackChamber Group is a purpose-built, vertically integrated data center developer and SEC-registered investment adviser headquartered in Washington, DC.  Designed from inception to be an optimized real estate partner for the world's leading hyperscale technology firms in augmenting their infrastructure base, BlackChamber has extensive industry experience and a track record of successful data center development execution.

About JLL 
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500 company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 111,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com. 

Contact: Kristen Murphy, JLL Director, Public Relations
Phone: +1 617 543 4873
Email: kristen.murphy@jll.com 

 

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SOURCE JLL

FAQ

How much construction financing did JLL arrange for BlackChamber Group in 2024?

JLL arranged over $1.2 billion in construction financing throughout 2024 for BlackChamber Group's data center developments in Northern Virginia.

What is the total power capacity of BlackChamber's Northern Virginia portfolio through JLL's financing?

BlackChamber's Northern Virginia portfolio includes eight campuses with potential to yield nearly 1.5 GW of gross power capacity across more than six million square feet.

What was the data center vacancy rate in Northern Virginia in 2024?

Northern Virginia ended 2024 with an extremely low data center vacancy rate of just 0.4%.

How much planned data center development is there in Northern Virginia?

Currently, Northern Virginia has more than 5.8 GWs of planned data center development.

What types of capital sources were involved in JLL's financing arrangements?

The financing involved bank balance sheets, commercial real estate and infrastructure verticals, and private credit vehicles funded with insurance company capital.