Carter Validus Mission Critical REIT, Inc. Completes Sales Of Two Data Centers
Carter Validus Mission Critical REIT, Inc. (the “Company”) has announced that it sold two data center properties for $85.0 million.
Milwaukee Data Center Sale
On June 11, 2018, the Company sold the Milwaukee Data Center to Landmark Infrastructure Operating Company, LLC, a Delaware limited liability company, for $21.0 million. The facility is a purpose-built, mission-critical data center located in Hartland, Wisconsin, approximately 30 miles from Milwaukee. The Milwaukee Data Center is situated on 7.98 acres, and consists of 59,516 square feet. The aggregate net book value of the Milwaukee Data Center, including intangible assets and liabilities recorded upon acquisition of the property and straight-line rent receivable, was approximately $17.4 million as of March 31, 2018.
Alpharetta Data Center II Sale
On June 15, 2018, the Company sold the Alpharetta Data Center II to Alpharetta DC, LLC, a Delaware limited liability company, for $64.0 million. The facility consists of 165,000 sq ft, including 50,440 sq ft of powered-shell enterprise data center space, 54,814 sq ft of office and administration space and 59,746 sq ft of supporting infrastructure space, and is situated on 14.40 acres in Alpharetta, Georgia, a northern suburb of Atlanta. The aggregate net book value of the Alpharetta Data Center II, including straight-line rent receivable, was approximately $55.1 million as of March 31, 2018.
“Consistent with our strategy of pursuing liquidity for our data center assets, we have successfully monetized two of our three remaining data center properties,” stated Michael A. Seton, chief executive officer and president of the Company. “Our board of directors is actively evaluating how to best deploy the proceeds from these transactions, after any required paydown of the Company's debt obligations, including, but not limited to, further reducing the leverage of the Company and possibly paying a special distribution to our stockholders,” Seton added.
Remaining Data Center Property
The Company owns one data center property, the Andover Data Center, which is currently under contract to be sold and is anticipated to close in the third quarter of this year; however, the certainty of sale, or any other outcome, is not assured.