Penzance Secures $100M for NoVa Data Center

October 13, 2025

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Canadian lender QuadReal Property Group provided the construction funding.

Penzance has secured $100 million-plus in construction financing and broken ground on Chantilly Premier, a fully leased powered shell in Northern Virginia. The lender was QuadReal Property Group, a global real estate investment, development and operating company based in Vancouver, British Columbia.

Rendering of Chantilly Premier, a fully leased powered shell located in Northern Virginia — Penzance has secured construction financing and broke ground on Chantilly Premier, a fully leased powered shell located in Northern Virginia. *Image courtesy of Penzance*

The tenant that has preleased the data center was not identified, although an announcement by Penzance earlier this year indicated that in February the company had executed a build-to-suit lease with an undisclosed hyperscaler for a three-story, 241,000-square-foot, LEED Silver data center. Assuming that the design and permitting processes were completed in the third quarter of this year, the project’s completion was scheduled for the first or second quarter of 2027.

A Penzance spokesperson did not reply to Commercial Property Executive’s request for further information.

The Chantilly Premier site is 79 acres, of which 12 acres are developable, in Fairfax County, 10 minutes from Dulles International Airport. The site reportedly benefits from exceptional connectivity to fiber and power infrastructure in the world’s largest data center market, which continues to reflect broader data center industry trends.

Cushman & Wakefield was the exclusive advisor to Penzance in securing the financing from QuadReal. A Cushman & Wakefield Equity, Debt & Structured Finance team of Managing Director Bindi Shah and brokers Marshall Scallan and Michael Zelin, all of the Washington, D.C., office, represented the borrower.

In a prepared statement, Scallan noted that the funding is evidence for the market’s strong appetite for high-quality, preleased assets backed by experienced sponsors.

No end to the heat

In March, Penzance acquired Gateway & Linden, a six-building, 212,000-square-foot industrial portfolio in Manassas, Va., from a partnership owned by Davin Holdings and The Davis Cos. for $55 million.

The portfolio consists of two industrial parks: Linden Business Center on Coppermine Drive and completed in 2001, and Gateway Centre on Gateway Court, dating to 1988. Both properties serve warehouse tenants that support the local data center industry.

That Penzance’s facility is fully preleased despite being roughly 18 months from delivery is not surprising, in light of how hot the Northern Virginia is, a first-half report from CBRE shows.

The market saw net absorption of 538.6 MW in the first half, alongside 2,078.2 MW under construction and against a total inventory of 3,480.1 MW. That all boils down to a razor-thin vacancy of 0.7 percent, market-wide.

In verbiage that could have been written specifically about Chantilly Premier, CBRE reported, “High preleasing activity in single-tenant buildings is making it challenging for occupiers to secure large contiguous spaces (15 to 20 MW) within existing and planned colocation facilities. Preleasing now extends to capacity slated for delivery in 2027 and beyond, particularly for large, single-building or campus-sized requirements.”