Carter Validus Buys Two Data Centers for $34M

The company enlarged its data center portfolio with two assets, one in Tempe, Ariz. and another in King of Prussia, Pa. This year, the company invested over $1 billion in data center facilities.
Tempe, Az., Data Center
Tempe, Ariz. Data Center

Carter Validus Mission Critical REIT II has acquired two data centers for an aggregate price of $34.4 million, excluding closing costs and related fees. The two properties are situated in King of Prussia, Pa. and Tempe, Ariz. After closing the deal, the REIT procured a $12.5 million loan with Israel Discount Bank of New York. The company is focused on diversifying its portfolio with health care and data center asset acquisitions.

According to its June portfolio overview, Carter Validus invested more than $1 billion in 20 data centers, including the largest data center in Connecticut. It also acquired 64 health care facilities, with total investments of more than $1 billion. The weighted average occupancy of Carter Validus’ portfolio was at 95 percent.

The facilities

The Tempe Data Center II is located at 2005 Technology Circle on 10.9 acres, within the ASU Research Park, in metro Phoenix’s East Valley. The mission-critical facility was purpose-built in 1998 and since then received several improvements. Of the total 58,560 square feet available, 17,000 square feet is raised-floor space. The facility offers 5.5 megawatts of power, with an immediately available potential expansion of 2.2 megawatts. It is 100 percent leased, with nine years remaining on the original contract. It operates on a dual-feed dark fiber offered by SRP and Century Link, as well as lit fiber from Cox Communications, Century Link and OneNeck. Carter Validus purchased the data center for $15.2 million.

King of Prussia Data Center
King of Prussia Data Center

The second data center in King of Prussia, Pa. was acquired by the REIT for $19.2 million. It occupies 3.7 acres with a parking lot of 63 spaces. The 50,000-square-foot building is also 100 percent leased. Construction was completed in 1960 and the building was re-purposed as an enterprise data center in 1997. It offers two megawatts of total power.

We believe these data centers are great additions to our portfolio and align very well with our strategy. We believe both data centers are in great condition, are 100 percent occupied by high-quality, creditworthy tenants and will be accretive for or investors,” said John Carter, president & CEO of CV Mission Critical REIT II, in a prepared statement.

Images courtesy of Carter Validus Mission Critical REIT II