RICHARDSON, TX-Carter Validus Mission Critical REIT has acquired a 20,000-square-foot, fully-leased data center here for $28.9 million. The Kansas City, MO-based non-traded REIT bought the property in an off-market transaction from Stream Data Centers. The facility represents the company’s first acquisition in the Lone Star State.
“We had been in discussions with Carter Validus for several months about several assets,” says Robert Kennedy, managing director and partner of Stream Data Centers.
Constructed in 2010, the single-story, structurally-enhanced building contains 10,000 square feet of 36-inch raised-floor data center space. It features dual feed power from separate substations, 1.68 megawatts of critical load and a 2N electrical / N+1 mechanical configuration. It is fully-leased to a national healthcare organization.
Kennedy says the sale of the Richardson center is unique because it is one of the first sale transactions involving brand-new, fully-finished data center space. “The majority of data centers are owned by the actual end-users and the largest landlords in the sector are REITs who do not sell their properties,” he points out.
Although most data centers are priced in terms of price per kilowatt, this particular deal was valued differently, Kennedy notes. “Price per KW is more of a tenant/user oriented metric, and we spent a lot time with our tenant on this,” he tells GlobeSt.com. “The sale was more of a traditional capital markets transaction based on the quality of the property, tenant's credit and lease terms.”
Early next month, Stream Data Centers will break ground on another data center here.
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