Digital Realty Buys Two More Data Centers
August 23rd, 2010 By: Rich Miller
Digital Realty Trust (DLR) continues to buy up data center facilities, further expanding its portfolio to more than 16 million square feet of space. The company announced today that it has acquired two fully-leased data center buildings for $50.3 million.
The first property is 2950 Zanker Road in San Jose, California, which includes 69,700 rentable square feet and is 100 percent leased. Digital Realty identified the tenant only as a “major telecommunications company,” but Verizon operates a facility at that address.
The second property is 900 Dorothy Drive in Richardson, Texas, near Digital Realty’s huge Datacenter Park Dallas development project. The building totals over 56,000 rentable square feet and is fully leased on a long-term basis. Digital Realty said the site is a primary switch faciliy for the southwest region for “another major telecommunications company,” which appears to be AT&T Wireless.
“The addition of these facilities to our operating portfolio expands our footprint in two top-tier datacenter markets and further demonstrates our ability to source and complete the acquisition of high quality assets with credit tenants at attractive yields,” said Scott Peterson, Senior Vice President, Acquisitions, of Digital Realty Trust.
The deals extend Digital Realty Trust’s ongoing initiative to buy additional income properties, which generate revenue through rent from existing tenants.