Carter Validus Mission Critical REIT II, Inc. Acquires $51 Million Data Center Portfolio

April 17, 2018 | James Sprow | Blue Vault

In an April 17 press release, Carter Validus Mission Critical REIT II, Inc. (CV Mission Critical REIT II), a public, non-traded real estate investment trust announced that on March 14 it had acquired the Rancho Cordova Data Center Portfolio for a contract purchase price of approximately $51 million, which excludes acquisition fees and costs.

The Rancho Cordova Data Center Portfolio consists of two single-story facilities:

1. A 69,048 square foot turnkey colocation data center, situated on 4.34 acres, built in 1982 and renovated in 2008. Surface lot parking provides 129 spaces.
2. A 63,791 square foot multi-tenant wholesale data center, situated on 4.91 acres, built in 1984 and renovated in 2012. Surface lot parking provides 128 spaces.

The Rancho Cordova Data Center portfolio consists of two Tier III single-story data centers located in Sacramento, California, within 0.2 miles of each other. The portfolio consists of a colocation and wholesale data centers that in total are 82.4% leased. Combined, the data centers have more than 44,800 square feet of raised floor white space, a total load capacity of 7.0MW, expandable to 8.0MW with an additional substation, and a total critical capacity of 5.4MW.

Michael A. Seton, Chief Executive Officer of CV Mission Critical REIT II, commented, “We are pleased with our ability to consistently execute on our focused strategy of acquiring high-quality mission critical real estate assets in key markets across the country. We believe that the addition of the Rancho Cordova Data Center portfolio is an accretive transaction which will add to the diversity to our asset base and bring value to our shareholders as we continue to construct of our data center portfolio.”

Blue Vault reports that as of December 31, 2017, Carter Validus Mission Critical REIT II, Inc. owned 53 real estate investments consisting of 70 properties with 5.19 million square feet of rentable commercial space.  During the year ended December 31, 2017, the Company acquired 16 real estate investments, consisting of 19 properties, for an aggregate purchase price of $610.92 million and comprising approximately 2,149,000 gross rental square feet of commercial space. Subsequent to December 31, 2017, and through March 31, 2018, the REIT acquired two real estate properties for an aggregate purchase price of $53.96 million and comprising 133,000 gross rental square feet of commercial space. 

The REIT has issued three classes of common stock and its current distribution yields (net of class-specific fees) are as follows:  Class A, 6.40%; Class I, 7.04%, Class T, 5.68%

For more information see www.cvmissioncriticalreit2.com.

Sources:  Carter Validus Mission Critical REIT II, Inc. April 17 Press Release; Blue Vault Partners

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