Digital Realty Trust, a San Francisco-based provider of data center solutions, announced yesterday that it had acquired a 271,000 square foot redevelopment property in Totowa, New Jersey for approximately $16.8 million from an undisclosed seller. Records from PropertyShark.com indicate that 701 Union Boulevard, which once served as the printing center for Hoffman La-Roche, previously changed hands in 2004 for $1 million. Digital Realty said that they will be redeveloping the 271,000 square foot building on just over 34 acres of land, and bringing in 15.75MW of power and eventually a 50MVA onsite substation for later expansion. CBRE's Kevin Welsh and Tom Mallaney orchestrated the trade according to a GlobeSt.com article.
"With our current portfolio in the New York Metro market nearing capacity, this new site enables us to add inventory to meet future demand for highly reliable data center space in this key corporate enterprise market," said Michael Foust, Chief Executive Officer of Digital Realty. "Its location also adds geographic diversity for customers looking to deploy mission critical business applications outside of Manhattan."
"Based on our conservative underwriting, we expect to generate attractive risk adjusted returns on this investment," added Scott Peterson, Chief Acquisitions Officer of Digital Realty. "With the redevelopment opportunity of the existing building coupled with the additional land available for new development, we believe this investment has considerable upside potential."
For more news and information visit Blumberg Capital Partners.
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