Digital Realty Trust owns or controls 11.4 million sf in 57 properties in 25 markets throughout North America and Europe. The Folsom Street acquisition consists of a 151,000-sf datacenter facility that is 64% leased and over 201,000 sf that will be classified as space held for redevelopment. The street address is 114 Rue Ambroise Croizat.
As part of a plan to focus on its core datacenter and Internet gateway facilities, the company recently agreed to outsource the operation of "Meet-Me-Room" facilities in 10 of its 56 buildings to Tel(x) Group Inc., a company that focuses exclusively on operating such facilities. "Meet-Me-Room" facilities are smaller spaces within larger Internet gateway facilities (aka telco hotels) that allow carriers can cross connect.
Digital Realty CEO Michael Foust says the Folsom acquisition accomplishes multiple goals. It gives the company a "significant footprint" in an strategic European gateway for many multinational corporations, it gives the company instant income because it is already partially leased, and it gives the company room to accommodate future demand, he says.
In early November, the company acquired its first Internet gateway facility serving the Pacific Northwest and bolstered its datacenter holdings in Florida, Massachusetts and Arizona. The total investment was $79.1 million.
In July, Digital Realty acquired three properties for $236.9 million. The acquisitions, totaling about 640,000 sf, included two data centers and an Internet gateway facility. The largest Internet gateway asset acquired in the deal was a 347,000-sf Internet gateway facility in Phoenix. The purchase price was $175 million. The larger of the two data center acquisitions is a 263,700-sf, three-building complex in Fort Worth. The seller, Savvis Corp., leased back the facility for 15 years. The purchase price was $50.6 million.
In April, Digital Realty Trust spent $71 million on 700,000 sf in three data centers in Canada, Georgia and Texas. The largest property was a 313,600-sf facility in Atlanta that is leased through 2011 to a major Internet enterprise as a key data center.
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