Corporate Office Properties Trust (COPT) announced the acquisition of a 233,000-sq-ft data center known as Power Loft @ Innovation in Manassas, VA, and the acquisition of the assets of Power Loft LLC, relating to the data center, for approximately $115 million. Prior to the acquisition, Power Loft LLC, founded by James F. Coakley, was the operating company providing development management, property management and leasing services to the data center.
The two story data center is located at 9651 Hornbaker Road on a secure, 20 acre site within the 1,500 acre Innovation Park that is 30 miles southwest of Washington, DC. Innovation Park is part of Northern Virginia's technology corridor. Power Loft @ Innovation is 16% leased, long term, to two tenants who have a combined initial power commitment of 3 megawatts and further expansion rights of up to a combined 5 MW of critical power.
The data center is designed for LEED Silver Certification and its shell was completed in early 2010. This innovative data center features a unique two level design that places the 100,000 sq ft of raised floor space on the second level with the accompanying equipment directly beneath it on the first level, creating significant efficiencies as well as the ability to increase critical power to keep pace with market demand for more densely powered space. COPT will complete the remaining development with an initial stabilization at 18 MW; full capacity is up to 30 MWof critical power. Additional development costs are estimated at $166 million.
In addition to acquiring Power Loft @ Innovation, COPT has formed a joint venture with James F. Coakley. The new joint venture, known as Powerloft Services LLC, will assume the responsibilities of the former operating company relating to development, management and leasing. COPT will own a controlling interest in the joint venture.
"We are pleased to announce this acquisition and joint venture to accelerate the growth of our data center business," stated Randall M. Griffin, president and CEO of Corporate Office Properties Trust. "The Northern Virginia data center market is among the strongest and most stable in the U.S., with demand expected to significantly outpace supply for the next several years," he added.