CVMC REIT II Acquires Two Data Centers near Atlanta, Detroit

Carter Validus Mission Critical REIT II Inc. expands in Florida and Michigan with the addition of two data centers to its growing portfolio.

By Robert Demeter

Data Center Rack
Data Center Rack

Atlanta & DetroitCarter Validus Mission Critical REIT II Inc. announced the acquisition of two data center properties for approximately $24.2 million in Alpharetta, Ga., respectively Flint, Mich. CVMC REIT II acquired the Alpharetta Data Center III property (ADC III) for approximately $15.8 and the Flint Data Center for $8.5 million.

“We are extremely pleased with our pace of acquisitions in the CVMC REIT II platform. The acquisition of these properties are representative of our commitment to making mission critical investments into the CVMC REIT II portfolio and continuing to deliver on our promises to shareholders,” said John Carter, CEO, CVMC REIT II.

Located 1,500 feet within Georgia Power in Alpharetta, ADC III is a single-story, 77,322-square-foot Tier III colocation data center, fully leased to Sungard Availability Services LP, a leading provider of information availability through managed IT, cloud and recovery services based in Wayne, Pa. Since the construction of ADC III in 1999, Sungard has invested in core infrastructure improvements as well as utilities, mechanical and electrical system upgrades. Two new diesel generators and underground fuel storage tanks were added to the four previously existing generators and USTs in 2013-2014. The data center facility has an N+1 level of redundancy for electrical systems and cooling systems. The building improvement is designed with large column spacing allowing for flexible floor layouts and has approximately 46,000 square feet of raised floor space. CVMC REIT II also acquired Alpharetta Data Center II for $56.7 million in the last quarter of 2014.

The Flint Data Center is a one-story building in Flint, 100 percent leased to Online Tech LLC, which operates five data centers in the Midwest and provides secure and compliant enterprise cloud and colocation hosting services. The data center has 43,724 rentable square feet, 22 feet of clear height allowing for efficient cooling, and approximately 12,000 square feet of optimized raised floor space. The Tier II facility, with mainly N+1 resiliency throughout, has 4MW of service capacity through redundant feeds from a single substation. The site has four 1MW generators and its biometric and dual factor authorization access provides premium security for white space areas. The Flint Data Center’s location near the Detroit market is ideal given the large concentration of Fortune 500 companies in the area, protection from natural disasters provided by its inland location, and cooling benefits from a naturally cooler temperature.

“These high-quality data center acquisitions are excellent additions to CVMC REIT II’s portfolio. Given the quality of the facilities, their central locations and the fact that both are 100% occupied by first rate tenants, these data center properties benefit from strong real estate fundamentals that we believe will translate into meaningful value for shareholders,” said Michael Seton, president of CVMC REIT II.

Carter Validus Mission Critical REIT II Inc. is a public, non-traded company headquartered in Tampa, which acquires mission critical real estate assets in the data center and healthcare sectors located throughout the United States and abroad.

Photo courtesy of Carter Validus Mission Critical REIT II.