Savvis' St. Louis HQ Sold to Digital Realty
August 29th, 2007 By: Rich Miller
Digital Realty Trust (DLR) late today confirmed its acquisition of One Savvis Parkway in St. Louis, which is the corporate headquarters for managed hosting provider Savvis Inc. (SVVS). Digital Realty paid $27.7 million to acquire the 156,000 square foot building from landlord Duke Realty Corp.
The announcement had been anticipated since Digital Realty execs said in an analyst call earlier this month that it had bought three St. Louis properties for $80.7 million. The company confirmed this morning that two of the acquisitions were the Bandwidth Exchange buildings at 900 Walnut and 210 North Tucker.
Savvis is Digital Realty’s largest tenant, leasing more than 1.38 million square feet of space in Digital’s properties. Savvis annual rent of $29.3 million represents 11 percent of revenue. “Savvis continues to be a very important customer for DLR and we are pleased to have its headquarters as part of our operating portfolio,” said Michael Foust, CEO of Digital Realty Trust. “The acquisition of this property represents a very attractive risk-adjusted return for DLR.”