Carter Validus Purchases Data Center in Connecticut
December 18, 2018 | James Sprow | Blue Vault
Carter Validus REIT Management Company LLC has acquired a single-story Connecticut data center for $5.2 million.
The company purchased the Hartford Data Center, a 19,247-square-foot space located on an acre in the city’s downtown area. The center is constructed of concrete block and steel frame with a glass and masonry exterior. It includes a display area on the roof for sculptures by local artists as part of Hartford’s downtown arts initiative.
The space, according to CV REIT officials, has recently been renovated by the tenant, a subsidiary of a large, global telecommunications company.
CV REIT said the tenant signed a 12-year lease in January, with an option to renew. The tenant has replaced equipment and begun renovating the facility. While the name of the tenant was kept anonymous, the facility’s size matches that of one at 1 Gold Street, Bushnell Plaza. A 2015 sales document lists Verizon as offering data center services from that location.
“The acquisition of Hartford Data Center highlights our team’s ability to consistently source long-term, stable cash flows in the mission critical data center space as we strategically expand our footprint,” said CV REIT Management CEO Michael A. Seton in a statement.
The acquisition is one of three for the real estate investment company this year. The company in June acquired San Jose Data Center, comprised of enterprise and colocation space in California, for a contract purchase price of $49.15 million, excluding acquisition fees and costs. On the same day, CV REIT acquired Oceans Katy Behavioral Health Hospital in Texas for $15.32 million.
In October, CV REIT acquired a data center in St. Louis for $3.2 million.
Carter Validus Mission Critical REIT sold off the last of its data centers in August, which Seaton said was “consistent with our strategy of pursuing liquidity for our data center assets,” once a portfolio worth $2.3bn.
Its successor, Carter Validus Mission Critical REIT II, continues to invest in data centers, of which it has 28 in total. These include facilities in San Jose, Andover, Chicago, Sacramento (California), Elgin (Illinois), King of Prussia(Pennsylvania), Norwalk (Connecticut), Atlanta (Georgia) and Tempe(Arizona).
Sources: Tampa Business Journal, DCD Magazine
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