Carter Validus Sells Data Center for $315M

An affiliate of Digital Realty Trust LP is the new owner of a 250,000-square-foot data center situated in the Chicago suburb of Northlake, Ill.

In a $315 million deal, an affiliate of Digital Realty Trust LP (DLR) has purchased an approximately 250,000-square-foot data center in the Chicago suburb of Northlake, Ill., from Carter Validus Mission Critical REIT Inc.

The data center was originally developed by Ascent LLC, and the 19-acre site provides room for expansion, a DLR spokesperson told Commercial Property Executive.

Designated CH2 by its developer, the center features an onsite 2N electrical substation, 2N UPSs and PDUs, and substantial security measures, according to information from Ascent.

Carter Validus declined to provide requested additional information.

The center’s aggregate net book value, as held on the Carter Validus balance sheet, was approximately $227.3 million as of the end of the third quarter. The seller reportedly repaid about $105 million in property-level debt in conjunction with the sale.

We are pleased with the price achieved in connection with selling the Chicago Data Center, which, we believe, represents a significant gain from our initial off-market purchase made in 2014,” Carter Validus President Michael Seton said in a prepared statement. “By investing additional capital, actively managing the asset and capitalizing on the growing data center market, we were able to deliver significant shareholder value with the sale of this asset.

Moelis & Co. LLC was the lead financial advisor to Carter Validus, along with KeyBanc Capital Markets Inc. and SunTrust Robinson Humphrey Inc. acting as co-advisors, and Morris, Manning & Martin LLP serving as legal counsel.

Living up to the “Mission Critical” name

Last May, in keeping with its mission, the Chicago data center seller’s sibling, Carter Validus Mission Critical REIT II Inc., bought the largest data center in Connecticut, as well as four health-care properties, for a total of $141 million.  The health-care properties comprised a facility in Aurora, Colo., and three rehabilitation hospitals in Texas.

Images courtesy of Ascent LLC