TAMPA, Fla.–(BUSINESS WIRE)–Carter Validus Mission Critical REIT II, Inc. (“CVMC REIT II”) announced the acquisition of data center properties totaling approximately $24.2 million in aggregate purchase price.
CVMC REIT II acquired the Alpharetta Data Center III property (“ADC III”) on February 2, 2016 for approximately $15,750,000.
ADC III is a single-story, 77,322 square foot Tier III colocation data center situated in Alpharetta, Georgia, located within 1,500 feet of the Georgia Power substation property. The ADC III facility is 100% leased to Sungard Availability Services, LP, a leading provider of information availability through managed IT, cloud and recovery services based in Wayne, Pennsylvania. From the time when ADC III was originally built in 1999, Sungard Availability Services, LP has invested in core infrastructure improvements as well as utilities, mechanical, and electrical system upgrades. Two new diesel generators and accompanying underground fuel storage tanks were added to the four previously existing generators and USTs in 2013-2014, and the data center facility has an N+1 level of redundancy for electrical systems and cooling systems. The building improvement is designed with large column spacing allowing for flexible floor layouts and has approximately 46,000 square feet of raised floor space.
CVMC REIT II purchased the Flint Data Center (“Flint Data Center”) on February 2, 2016 for approximately $8,500,000.
The Flint Data Center property is a one-story building located in Flint, Michigan that is 100% leased to Online Tech, LLC (“Online Tech”). Online Tech operates five data centers in the Midwest and provides secure and compliant enterprise cloud and colocation hosting services. The Flint Data Center has 43,724 rentable square feet, 22 feet of clear height allowing for efficient cooling, and approximately 12,000 square feet of optimized raised floor space. The Tier II facility, with mainly N+1 resiliency throughout, has 4MW of service capacity through redundant feeds from a single substation. The site has four 1MW generators and its biometric and dual factor authorization access provides premium security for white space areas. The Flint Data Center’s location near the Detroit market is ideal given the large concentration of Fortune 500 corporate offices in the area, protection from natural disasters provided by its inland location, and cooling benefits from a naturally cooler temperature.
“This transaction with Carter Validus allows us to ramp up our investment in our secure, compliant, enterprise cloud infrastructures, new DRaaS and security offerings,” said Yan Ness, Chief Executive Officer of Online Tech. Ness added, “These new offerings, combined with our five data centers, allow us to provide a Fortune 500 class IT infrastructure as a service to the Midwest market.”
“These high-quality data center acquisitions are excellent additions to CVMC REIT II’s portfolio. Given the quality of the facilities, their central locations and the fact that both are 100% occupied by first rate tenants, these data center properties benefit from strong real estate fundamentals that we believe will translate into meaningful value for shareholders,” said Michael Seton, President of CVMC REIT II.
“We are extremely pleased with our pace of acquisitions in the CVMC REIT II platform. The acquisition of these properties are representative of our commitment to making mission critical investments into the CVMC REIT II portfolio and continuing to deliver on our promises to shareholders,” said John Carter, Chief Executive Officer of CVMC REIT II.
About Carter Validus Mission Critical REIT II, Inc.:
Carter Validus Mission Critical REIT II, Inc. is a public, non-traded company headquartered in Tampa, Florida that has elected to be taxed, and believes it qualifies, as a real estate investment trust. The Company intends to acquire mission critical real estate assets located throughout the United States and abroad. Mission critical real estate assets are purpose-built facilities designed to support the most essential operations of tenants. Carter Validus Mission Critical REIT II, Inc. intends to focus its acquisitions on mission critical assets in the data center and healthcare sectors. See www.cvmissioncriticalreitii.com for more information.
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. The Company undertakes no obligation to update any forward-looking statement contained herein to conform the statement to actual results or changes in the Company’s expectations.
Carter Validus Mission Critical REIT II, Inc.
Stacy Sheedy, 813-316-4292
Marketing Manager, Carter Validus