Digital Realty Trust, Inc. has announced it has completed the acquisition of 701 Union Boulevard in Totowa, New Jersey, a 271,000-sq-ft redevelopment property located on 34.31 acres of land approximately 20 miles west of the George Washington Bridge. The purchase price was approximately $16.8 million.
"With our current portfolio in the New York Metro market nearing capacity, this new site enables us to add inventory to meet future demand for highly reliable data center space in this key corporate enterprise market," said Michael F. Foust, chief executive officer of Digital Realty. "Its location also adds geographic diversity for customers looking to deploy mission critical business applications outside of Manhattan."
Digital Realty plans to redevelop the existing building to accommodate 15.75 megawatts of critical IT load. Existing area substations will be utilized to supply power to the initial phase of redevelopment. For future phases, the Company plans to construct a 50 MVA onsite substation to support the development of additional data center capacity at the site.
"Based on our conservative underwriting, we expect to generate attractive risk adjusted returns on this investment," added Scott Peterson, chief acquisitions officer of Digital Realty. "With the redevelopment opportunity of the existing building coupled with the additional land available for new development, we believe this investment has considerable upside potential."
Digital Realty's Turn-Key Flex data center solution is a modular approach to delivering secure, enterprise quality data center space to meet customers' just-in-time requirements. Designed to provide maximum flexibility, reliability and efficiency, each Turn-Key Flex facility comes fully commissioned with its own dedicated electrical and mechanical infrastructure. Utilizing Digital Realty's proprietary POD Architecture and extensive supply chain, Digital Realty's next generation Turn-Key Flex data centers are designed for the future and ready today.