Digital Realty Announces $188 Million Turn-Key Flex® Joint Venture
The partnership is with Griffin Capital Essential Asset REIT, Inc.
Digital Realty Trust, Inc. has announced the formation of a $187.6 million joint venture between an affiliate of Digital Realty and an affiliate of Griffin Capital Essential Asset REIT, Inc. ("GCEAR").
Digital Realty contributed to the joint venture, which was formed on September 9, 2014, an approximately 132,280 sq ft Turn-Key Flex® data center in Ashburn, VA, valued at approximately $185.5 million (excluding $2.1 million of closing costs), or $20,611 per kW. The property is expected to generate forward 12-month cash net operating income of approximately $13.1 million, representing a 7.05% cap rate. The property is 100% leased, with a weighted average remaining lease term of approximately seven years. GCEAR will hold an 80% interest in the joint venture and Digital Realty will retain a 20% interest. Digital Realty will continue to manage the property, and will receive management fees and will also be entitled to participate in certain excess cash flow and capital proceeds for managing the property.