Carter Validus Mission Critical REIT II, Inc. Acquires Three Properties
July 19, 2017 | by James Sprow | Blue Vault
Carter Validus Mission Critical REIT II, Inc., a non-traded real estate investment trust focused on assembling a portfolio of high-quality data center and healthcare real estate, acquired assets during the first half of 2017 for approximately $398 million in aggregate contract purchase price, excluding closing costs and related fees.
Most recently, CV Mission Critical REIT II acquired the following three properties:
- Sunnyvale Data Center: Acquired on June 28, 2017, for a $36.8 million contract purchase price
Property Details: The Sunnyvale Data Center is a 76,573-square-foot, two-story colocation data center constructed of concrete and steel frame with a membrane roof. Located in Sunnyvale, California, the building is 100% leased to a leading retail colocation services provider. - Texas Rehab – San Antonio: Acquired final property in the Texas Rehabilitation Hospital Portfolio on June 29, 2017, for a $14.5 million contract purchase price
- Property Details: Rounding out the four-property Texas Rehabilitation Hospital Portfolio, this acquisition consists of a 44,746-square foot in-patient rehabilitation facility (“IRF”) located in San Antonio, Texas. The IRF offers private and semi-private rooms, three rehabilitation gyms, onsite radiology, a pharmacy, and a cafeteria. The hospital’s programs primarily focus on brain injury, stroke, amputation, spinal cord injury, neurological conditions, complicated orthopedics, and multiple trauma. This IRF houses the Warm Springs Veterans Center of Excellence, which is a controlled access specialty unit designed to meet the rehabilitation needs of active duty military veterans and their family members. This IRF is 100% leased to an affiliate of Post Acute Medical, LLC, for an 9.6-year remaining lease term.
- Cincinnati Data Center: Acquired on June 30, 2017, for a $10.3 million contract purchase price
- Property Details: Situated on 4.98 acres in Cincinnati, Ohio, the three-story Cincinnati Data Center is a 58,617-square-foot enterprise data center with an adjacent 11,209-square-foot building housing supporting infrastructure. The Cincinnati Data Center is 100% leased to a global investment-grade technology company.
In addition, and in accordance with its leverage strategy, CV Mission Critical REIT II entered into the following term loans:
- On June 15, 2017, a $116.2 million loan from KeyBank National Association
- On June 28, 2017, a $22.5 million loan from Siemens Financial Services, Inc.
- On June 29, 2017, a previously reported $39.9 million loan from Capital One, National Association, which was originated on April 20, 2017, increased to $50.4 million in connection with the final property in the Texas Rehabilitation Hospital Portfolio
John Carter, Chief Executive Officer of CV Mission Critical REIT II, commented, “2017 has been a productive and active buying year for CV Mission Critical REIT II so far. We are pleased with the quality and level of investment opportunities we have seen this year, and as the portfolio grows to approximately 4.6 million rentable square feet of high-quality real estate under management, we believe we are well-positioned to deliver desired results for our investors.”
Michael Seton, President of CV Mission Critical REIT II, added, “We believe our acquisition of these properties in high-growth industries located in key cities throughout the U.S. further strengthens the quality and market diversification of our portfolio. As we continue to keep a watchful eye on capital markets and successfully execute our mission critical acquisition strategy, we expect that our investments will yield positive results.”
Learn more about Carter Validus REIT Investment Management Company, LLC on our Sponsor Focus page.
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