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Digital Realty Closes $109M Office Buy

SAN FRANCISCO-The locally headquartered technology REIT acquires 642,000 rentable sf in five data centers and one office building. One of the data centers is in Denver, while the other properties are in California.

By Brian K. Miller | Updated on June 29, 2005

SAN FRANCISCO-Digital Realty Trust has acquired 642,000 rentable sf in five data centers and one office building for $109 million. The locally headquartered technology REIT says the investment has an expected un-leveraged first-year cap rate of 10.8%.One of the five acquired data centers is located near Denver and is 100% leased to Ameriquest Mortgage Co. through February 2012. The 80,000-sf property is home to Ameriquest’s corporate data center operations and was purchased for about $16.4 million. The remaining four acquired data centers, and the acquired office building, are located in the California cities of Santa Clara and El Segundo and are 100% leased to national Internet carrier Savvis Inc. through February 2019. The portfolio of properties was purchased for $92.5 million. Digital Realty chief investment officer Bill Stein could not be reached Wednesday for comment. Since its October 2004 initial public offering, Digital Realty has grown its portfolio by 44% both in number of properties and rentable square footage. Its portfolio now totals eight million rentable sf in 33 properties.

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