Carter Validus Mission Critical REIT II, Inc. Acquires Two Data Center Properties
The deal was valued at over $34 million.
Carter Validus Mission Critical REIT II, Inc. (“CV Mission Critical REIT II”)\ has acquired two data center properties on September 28, 2017 and September 29, 2017 for an aggregate $34.4 million contract purchase price, which excludes closing costs and related fees.
King of Prussia Data Center
Situated on 3.73 acres with a 63-space surface parking lot, the King of Prussia Data Center is a 100% leased, one-story, 50,000-sq-ft building built in 1960 and repurposed as an enterprise data center in 1997. The building is concrete block with steel frame construction with a concrete and brick exterior. CV Mission Critical REIT II acquired the King of Prussia Data Center on September 28, 2017, for a contract purchase price of $19.2 million, which excludes closing costs and related fees.
In conjunction with this acquisition, and in accordance with CV Mission Critical REIT II’s leverage strategy, on September 28, 2017, CV Mission Critical REIT II entered into a $12,545,000 loan with Israel Discount Bank of New York.
Tempe Data Center II
The Tempe Data Center II is a single-story, 58,560-sq-ft colocation data center purpose-built in 1998 and situated on 10.98 acres. The building features poured-in place concrete construction with concrete columns and beams surrounded by a stone and glass veneer. The surface lot parking provides 148 spaces. CV Mission Critical REIT II acquired the Tempe Data Center II on September 29, 2017, for a contract purchase price of $15.2 million, which excludes closing costs and related fees.
“We believe these data centers are great additions to our portfolio and align very well with our strategy. We believe both data centers are in great condition, are 100% occupied by high-quality, creditworthy tenants and will be accretive for our investors.” said John E. Carter, chief executive officer, CV Mission Critical REIT II.
Michael Seton, president, CV Mission Critical REIT II, added, “We are extremely pleased with the quality of CV Mission Critical REIT II’s real estate portfolio to date and remain optimistic about the outlook of the data center real estate market, particularly as it relates to our investment strategy. As we continue to seek opportunities that complement our existing portfolio, we remain focused on adding significant value and delivering on our commitment to investors."