Digital Realty Acquires Austin Portfolio for $31.9M

Digital Realty Trust, a provider of data center solutions, announced this week that it had purchased a six-building portfolio in Austin, Texas for $31.9 million, according to a San Francisco Business Times article. The portfolio consists of operating data centers and flex office space totaling over 337,000 square feet of space at the MetCenter Business Park. The six buildings are located adjacent to Digital Realty's data center at 7500 Metro Center Drive, approximately five miles southeast of the Austin central business district, and nearby Austin-Bergstrom International Airport.

"The acquisition of this portfolio achieves several key objectives for us," said Scott Peterson, Chief Acquisitions Officer at Digital Realty. "It expands our existing data center footprint in the Austin market, while providing stable cash flow immediately at an attractive going-in cap rate. Second, it provides near-term opportunity to add value by lease existing vacant space. And third, it offers the option to convert a portion of the property to data center space over the longer term as leases expire."

Two of the six buildings, totaling approximately 100,000 net rentable square feet, are operating data centers that are 100% leased to three tenants. The remaining four properties consist of flex office space.

For more news and information visit Blumberg Capital Partners.

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.