185,000-SF Data Center Fetches $90M

SANTA CLARA, CA-The fully-leased, 185,000-square-foot Bayshore Data Center here changed hands in November for $90.5 million in cash and assumed debt. Locally based Digital Realty Trust acquired the two-building asset from Inland Western Retail Real Estate Trust, which paid $95.7 million for the data center in 2005. Holiday Fenoglio Fowler LP had the disposition assignment.

Bayshore Data Center is adjacent to Silicon Valley Power and U.S. Highway 101 in the Santa Clara data center cluster in Silicon Valley. Its two buildings–a 160,000-square-foot building at 1350 Duane Ave. and a 25,000-square-foot building at 3080 Raymond St.–are fully leased to tenants including Sprint Communications, Equinix and Layer42.Net.

Bryan Ley and John Crump of HFF’s Los Angeles office and Gerry Rohm and Zane Sweet of HFF’s San Francisco were the brokers with the marketing assignment. Rohm says the offering attracted “tremendous interest” due to its in-place assumable debt, its “terrific location” in Santa Clara and generally growing demand for the product type. Digital Realty assumed a $52.8 million mortgage that bear s interest at 5.423% and is interest-only through the initial maturity date of October 1, 2012.