Newmark secures $2.3 billion loan for Texas data center

NEW YORK - Newmark Group , Inc. (NASDAQ:NMRK), a prominent commercial real estate advisor, has orchestrated a $2.3 billion loan for the development of a substantial data center project in Abilene, Texas. This financial backing is in support of a 206 megawatt Build-to-Suit data center, which is underpinned by a lease with a leading technology company. The project involves Blue Owl Capital (NYSE:OWL), which has demonstrated remarkable market performance with a 65% return over the past year and is currently trading near its 52-week high of $25.03.

The financing for the data center, which will feature 300 megawatts of on-site self-generation, was secured by Newmark's top executives in collaboration with the firm's Head of Data Center Capital Markets. JP Morgan provided the loan for this project, which is a collaboration between Blue Owl Capital, Crusoe Energy Systems, and Primary Digital Infrastructure.

The development of the data center commenced in 2024 and is expected to begin operations in early 2025. It is set to offer state-of-the-art fit-outs and large-scale clean capacity to its customers, positioning it within one of the fastest-growing markets in the United States.

According to Newmark Research, the data center industry has been experiencing rapid growth due to the increased demands from hyperscalers, AI, high-performance computing users, and large enterprises. This surge has led to a record high in data center construction pipelines and land banking for future development. For detailed insights into companies like Blue Owl Capital and their market positioning, InvestingPro offers comprehensive analysis with 12+ exclusive ProTips and in-depth financial metrics.

Blue Owl Capital (NYSE:OWL), a participant in the project, is a leading asset manager with $235 billion in assets under management as of September 30, 2024. The company maintains a strong financial position with a "GREAT" InvestingPro Financial Health score of 3.2, impressive revenue growth of 32% in the last twelve months, and a current ratio of 1.96 indicating solid liquidity. InvestingPro analysis suggests the stock is trading at premium valuations with a P/E ratio of 119.7. Crusoe Energy Systems, another collaborator, is known for its sustainable computing infrastructure, and Primary Digital Infrastructure is led by industry veterans with over 60 years of collective experience in data center leadership.

Newmark, with revenues of approximately $2.6 billion for the twelve months ending September 30, 2024, operates globally, providing a comprehensive suite of services to clients across various sectors of the real estate industry.

The information in this article is based on a press release statement. Statements regarding Newmark's future are forward-looking and subject to risks and uncertainties that could cause actual results to differ materially. Newmark has made no commitment to update any forward-looking statements.

In other recent news, Databricks Inc. has secured over $5 billion in its largest debt financing round, with the funds intended to alleviate tax burdens related to stock sales by its employees. This coincides with a $10 billion funding round that increased the company's valuation to $62 billion. Databricks anticipates surpassing $3 billion in annualized revenue by the end of the fiscal year in January 2025.

Blue Owl Capital Corporation's shareholders have approved proposals concerning an upcoming merger between Blue Owl Capital Corporation and Blue Owl Capital Corporation III. The merger aims to create a more diversified business development company with enhanced credit quality. In other developments, Goldman Sachs downgraded Blue Owl Capital's stock from Buy to Neutral, citing an anticipated slowdown in its credit business' compound annual growth rate and increasing competition.

Blue Owl Capital is also contemplating the merger of several portfolio firms to form a major industry player, reflecting the ongoing consolidation in the alternative investment market. Piper Sandler raised the price target for Blue Owl Capital to $25, showing confidence in the company's long-term growth, particularly its forecasted fee-related earnings growth of over 25%.

These developments reflect the dynamic nature of the investment landscape, with companies like Databricks and Blue Owl Capital making strategic moves to position themselves for future growth.

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