Monday, December 6, 2010

Telx Adds 12,500 Square Feet Outside of Digital Realty Buildings

By David Gross

Wall Street has been paying close attention to the relationship between GI Partners, Digital Realty (DLR), and Telx.  An investor in both companies, GI Partners has enabled a close relationship between DLR and Telx, including a deal where DLR has granted Telx of exclusive right to operate the Meet Me Rooms in ten of its facilities.  Telx operates in five additional buildings, and today announced it has expanded in two of them - 8435 Stemmons Freeway in Dallas, and 100 Delawanna Avenue in Northern New Jersey.

8435 North Stemmons Freeway is an office building in which Telx already had leased a floor.   It sits just to the west of Love Field, and is four miles north of the massive Infomart building at 1950 North Stemmons Freeway, a major carrier hotel which serves as the Dallas equivalent to 111 8th Avenue or 60 Hudson.

The 100 Delawanna Avenue facility is located in Clifton, NJ,  about three miles west of the Meadlowlands Sports Complex, and a ten mile direct shot down Route 3 to the Lincoln Tunnel.   Adjacent to the New Jersey entrance to the tunnel is the 310,000 square feet 300 Boulevard East facility, owned by DLR and leased by Telx as well as many financial traders.  (300 Boulevard East sits right next to the loop by the NJ entrance to the tunnel, featured in the intro to The Sopranos") 100 Delawanna provides connectivity into that building as well as the popular Manhattan carrier hotels, and in many respects is a backup site and additional POP for customers in Weehawken.    Equinix has a competing site, NY4, in Secaucus, which sits just across the New Jersey Turnpike from 300 Boulevard East.

Telx has been in registration since March, but unfounded concerns about Equinix, as well as the mediocre performance of CoreSite in the aftermarket have kept it from coming out.   The company reported $95 million in revenue for the first nine months of 2010, up over 30% from the prior year, with operating margins rising from -5% to 14%, and EBITDA margins increasing to 33%.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.