Carter Validus Mission Critical REIT II, Inc. (“CV Mission Critical REIT II”) has acquired five properties in March 2017 for an aggregate purchase price of approximately $141.5 million.
Norwalk Data Center
Acquired by CV Mission Critical REIT II for approximately $58.9 million, the Norwalk Data Center is a powered-shell colocation data center property located in Norwalk, Connecticut. Standing as the largest data center in the state, the facility totals 167,691 rentable sq ft comprised of 75,000 sq ft of data center space, 30,000 sq ft of office space, and approximately 62,000 sq ft of supporting infrastructure. The Norwalk Data Center is 100% leased to Cervalis, LLC, a subsidiary of CyrusOne (NASDAQ: CONE). CyrusOne is an owner, operator, and developer of enterprise class, carrier neutral, multi-tenant data center properties.
Aurora Healthcare Facility
The Aurora Healthcare Facility was acquired by CV Mission Critical REIT II for approximately $11.5 million. Built in 2002 and located in Aurora, Illinois, across from the Rush-Copley Medical Center Campus, the 24,722 rentable-square-foot facility is 100% leased on a 9.5-year term to Copley Memorial Hospital, Inc. The facility currently houses an ambulatory surgery center, pre- and post-operating bays, cast rooms, a bone density room and imaging capabilities. Additional services offered include outpatient physical therapy and outpatient orthopedic surgeries.
Texas Rehabilitation Hospital Portfolio
CV Mission Critical REIT II acquired a portfolio of three fully-occupied inpatient rehabilitation facilities on March 31, 2017 for approximately $71.1 million. One property is located in Austin, Texas and is fully leased to HealthSouth Rehabilitation Hospital of South Austin, LLC. The other two properties are fully leased to affiliates of Post Acute Medical, LLC, (“PAM”) and are located in Allen, Texas and Beaumont, Texas. PAM is a national developer and operator of freestanding inpatient rehabilitation facilities and long-term acute care hospitals with operations in eight states. Together, the three properties total 169,722 sq ft of leased space.
“We believe these acquisitions represent our commitment to invest in high-quality real estate in the growing data center and healthcare industries. We further believe the critical nature of these buildings to the tenants that occupy them, along with their favorable locations and property conditions make them attractive acquisitions for CV Mission Critical REIT II,” said John E. Carter, chief executive officer of CV Mission Critical REIT II.
Michael A. Seton, president of CV Mission Critical REIT II, commented, “We are thrilled to add these fully-occupied, net leased properties to our expanding portfolio. We believe acquisitions like these align well with our high-growth, net lease, mission critical investment strategy, and anticipate that they will translate into added value for our stockholders.”
Subsequent to these acquisitions, CV Mission Critical REIT II entered into two term loans:
- A $34.2 million loan with Bank of America, National Association on April 19, 2017
- A $39.9 million loan with Capital One, National Association on April 20, 2017