Alter, Sterling Team Up On Telecom
GroundZero will develop carrier hotels and data centers

March 7, 2001 -- Real estate developer The Alter Group and private equity firm Sterling Capital, Ltd. today announced the formation of Ground Zero, a major joint venture to develop carrier hotels and data centers in key telecommunications markets around the nation.
Ground Zero has already completed two major telecommunications hubs in Phoenix, Arix., and will develop additional new facilities in Chicago, Indianapolis and Durham, N.C. over the next 24 months, according to Michael J. Alter, President of The Alter Group.
"The telecommunications industry remains underserved from a real estate standpoint," said Alter. "Companies wanting to bring their multimedia services to market have had to contend either with fledgling developers unfamiliar with network architecture, or with telephony or internet companies seeking new revenue streams through development that are unprepared for the complexities of the design/construction process.
"Ground Zero reconciles these issues because it is a rare combination of real estate and technological expertise," Alter added. "What's more, as a privately held developer specializing in fast track delivery, we can explore telco requirements in virtually any market in the nation without the extended decision making process of the institutional players."
"It makes great sense to bring our network experience together with Alter's construction management capabilities and the breadth of their organization," added Tony Wanger, senior vice president of Sterling and a director at Ground Zero.
The initial phase of Ground Zero's national telco program includes at least five new facilities representing more than 1 million square feet of high technology space. Among the existing facilities are the 315,000 s.f. Sky Harbor Technology Exchange and the 320,000 s.f. Downtown Phoenix Technology Exchange, both within the Phoenix metropolitan area.
In addition, Ground Zero has a 130,000 s.f. colocation facility under development in Durham, N.C.; a 50,000 s.f. carrier hotel in Indianapolis, Ind.; and has designated 18 acres in Downers Grove, Ill. for approximately 300,000 s.f. of new telco space.
Ground Zero provides instant access for heavy technology users, including ISPs, data network carriers, telephone companies and corporate IT departments to fiber-optic networks via state-of-the-art telco exchanges. Each Ground Zero facility is a carrier-neutral, bandwidth-intensive center designed to support networks operating at any protocol that can be expanded or "scaled" to grow as the traffic of information increases.
The Alter Group is a national corporate real estate development firm founded by William A. Alter in 1955, and has developed close to 100 million square feet of speculative projects for its own portfolio and build-to-suit facilities for corporate users. This year, the company has 6.7 million square feet of space, worth $758 million under development, and owns 1,500 acres of vacant, improved land for future development.
Sterling Capital, Ltd., is a diversified private equity firm with corporate offices in Chicago; Baltimore, Md. and New York, N.Y. Since its formation in 1983, the company has been involved in the acquisition and management of operating companies, investment management and trading, and commercial real estate.