Digital Realty Trust Acquires Data Center for $37M

San Francisco-based Digital Realty Trust announced this week that it had completed the acquisition of a 329,000 square foot data center facility in Eagan, Minnesota for $37 million. Structured as a sale-leaseback deal, Digital Realty purchased the facility from Delta Air Lines, which has signed an eight-year, triple net lease with Digital Realty for the facility.

"The acquisition of Towerview further expands our footprint in a key U.S. market and deepens our relationship with an existing customer—a major commercial airline with an extensive domestic and international network," said Michael Foust, chief executive officer of Digital Realty. "We look forward to continuing to work with Delta Air Lines to support their future data center requirements."

"We are beginning to see more enterprise customers, such as Delta, looking to Digital Realty to help them monetize their real estate assets while continuing to support their critical operations with a well-capitalized, long-term data center owner," said Scott Peterson, chief acquisitions officer of Digital Realty. "Our deep financial resources, acquisitions experience, and reputation with customers and sellers enable us to source and structure these complex transactions while achieving an attractive return for our shareholders."

Set on 39 acres of land, 1500 Towerview Road is a three-level facility with approximately 86,000 square feet of raised-floor data center space.

For more news and information visit Blumberg Capital Partners.

Digital Realty Pays $16.8M for Metro New York Redevelopment Property

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.

Digital Realty Buys $123M Dallas Office Park

Digital Realty Trust purchased an 819,000 square foot operating data center and office campus in Lewisville, Texas, a Dallas suburb, for $123 million. According to a CoStar report, Brookfield Real Estate Opportunity Fund I sold Convergence Office Center, which is about 40 minutes north of Dallas. The campus covers over 168 acres, which includes ten buildings and 39 acres of land for future development. At the time of sale, the property was leased as data center space to three tenants, representing approximately 36% of total revenue for the property, with the balance of space leased as office and office/lab space with major tenants including

"This acquisition will immediately contribute stabilized cash flow to our portfolio from the existing long-term leases, while providing a wide range of future development and potential redevelopment opportunities," said Michael F. Foust, Chief Executive Officer of Digital Realty. "Dallas continues to be a very strong market for us. When combined with Datacenter Park Dallas in Richardson, located approximately 25 miles from this site, we believe that we will be able to accommodate a large majority of the data center requirements from customers seeking space in the Dallas market."

For more news and information visit Blumberg Capital Partners.