Carter Validus Mission Critical REIT Grabs Two Properties

Taking advantage of Atlanta's lower operating costs, Carter Validus Mission Critical REIT has jumped on a purchase of two properties.

Carter Validus Mission Critical REIT, Inc. has acquired the Alpharetta Data Center II in Alpharetta, Ga., for $76.9 million and the Landmark Hospital of Savannah property in Savannah, for $20.2 million.

“The addition of both the Alpharetta Data Center II and the Landmark Hospital of Savannah properties is representative of our commitment to acquire high-quality, mission critical assets in the healthcare and data center industries,” John Carter, CVMC REIT’s chief executive officer, said in a company release.

The 165,000-square-foot Alpharetta Data Center II was purpose-built in 1999 to serve as the primary operations center for a financial services company. The data center is served by four fiber providers, and includes 50,440 square feet of 36-inch raised floor and 59,746 square feet of supporting infrastructure. It is situated on 14.4 acres and supports 10 MW of total load, which is fed from redundant utility substations. Additionally, it was designed to be fault-tolerant and withstand winds up to 200 miles per hour.

A recent report by Colliers International ranks metro Atlanta as one of the top 10 North American data center markets as the area has attracted West Coast brands such as Twitter and Google in recent years. The report says that operating costs in Atlanta are currently 50 percent lower than those in New York, so it’s an attractive home for East Coast data centers. Thus, demand for data center space in Atlanta is up about 20 percent to 30 percent, year over year.

The 48,184-square-foot, 50-bed Landmark Hospital of Savannah Long-Term Acute Care Hospital provides long-term treatment of patients needing specialized intensive or acute care. It opened Nov. 3, 2014 and is one of six hospitals opened by Landmark, including Athens, Ga., and four others in Utah and Missouri, under the vision of Dr. William Kapp III, founder and president of Landmark Holdings.