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A major Hillsboro data center has been refinanced with a loan from a life insurance company, JLL announced Wednesday.

The loan is for Hillsboro 3, a newly constructed, 358,000-square-foot data center. Flexential built the facility, which was completed in 2021. It then sold the data center to a joint venture partnership of Legacy Investing, a limited liability company, and Invesco Real Estate with a lease-back deal to Flexential.

The deal comes as Hillsboro has emerged as a leading market for data centers, partially because of relatively cheap power, proximity to the Silicon Valley and Seattle tech markets, and access to Hillsboro’s fiber ring and other wired infrastructure. Hillsboro had the second-highest amount of data center space under construction as 2022 began, behind only Northern Virginia.

Brokers are paying close attention.

鈥淭his fixed-rate life insurance company execution further demonstrates that the cost of capital for the data center asset class has reached levels more closely associated with core commercial real estate properties,鈥� JLL Managing Director Alex Witt stated in a news release.

Witt represented the borrower, alongside Senior Managing Director John Rose, Senior Director Carl Beardsley and analysts Zane Coffman and Auden Menke; all are members of JLL’s Capital Markets Debt Placement team.

The project occupies 19.77 acres at 5419 N.E. Starr Blvd.