Carter Validus Buys Philly Enterprise Data Center

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Carter Validus Mission Critical REIT acquired an 121,000 square-foot enterprise data center property in Philadelphia for $65 million in mid-November. The property is 100 percent leased to a single tenant, an undisclosed large investment management company.

CBRE represented the seller in connection with sale of the property to the REIT, and the acquisition was completed on November 13.

“We believe the quality of this tenant, combined with their long remaining lease term and significant capital investment in the property will provide a consistent rental income stream for our portfolio for years to come,” said John Carter, CEO, Carter Validus.

The facility was constructed to meet reliability and security standards, allowing the structure to potentially withstand extreme weather conditions including hurricanes, tornadoes, and earthquakes.

Carter Validus has been on quite a buying spree as of late. In addition to a string of healthcare facility purchases, it notably acquired 2 data centers in Texas last August. It acquired the Atos facility located in Arlington and an Internap data center located in Plano; both facilities were fully leased at the time, and it was a notable stake within the Dallas/Fort Worth technology corridor.

Carter Validus Mission Critical REIT, Inc. is a real estate investment trust that invests in mission critical real estate assets located throughout the United States. Carter Validus is focused on two sectors, data center and healthcare, citing societal trends that it believes will boost demand for data storage and outpatient healthcare. The company historically has focused most of its acquisition activity on two markets – Dallas and Atlanta. Here it has expanded through the acquisition of this property in Philadelphia. 

The company’s first acquisition in May 2011 was a a fully-leased data center in Richardson, Texas. In November of last year. Carter Validus paid $94 million to buy a large data center at 180 Peachtree in Atlanta, and in March it acquired a smaller facility in Norcross, Georgia. It has built up quite the portfolio of properties, focusing on fully-leased mission critical data center and healthcare assets.

About the Author

Jason Verge is an Editor/Industry Analyst on the Data Center Knowledge team with a strong background in the data center and Web hosting industries. In the past he’s covered all things Internet Infrastructure, including cloud (IaaS, PaaS and SaaS), mass market hosting, managed hosting, enterprise IT spending trends and M&A. He writes about a range of topics at DCK, with an emphasis on cloud hosting.

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