Digital Realty Buys Fully Leased Facility in Minnesota

Digital Realty Buys Fully Leased Facility in Minnesota

Digital Realty Trust continues its initiative to buy fully-lease income properties and expand its portfolio with a facility in suburban Minnesota.The deal continues Digital Realty’s initiative to buy fully-leased income properties, which generate revenue through rent from existing tenants, and an overall growing trend of sale-leasebacks.

Digital Realty Trust (DRT) has completed the acquisition of 1500 Towerview Road in Eagan, Minnesota, a suburb of Minneapolis. The 329,000 square foot data center sits on 39 acres of land and is fully leased to Delta Air Lines. The three-level facility consists of approximately 86,000 square feet of raised-floor data center space capable of supporting an IT load of 8.0 megawatts. It was purchased for $37 million and the deal was structured as a sale-leaseback, with Delta Air Lines signing an eight-year, triple net lease with DRT for the facility.

The deal continues Digital Realty’s initiative to buy fully-leased income properties, which generate revenue through rent from existing tenants, and an overall growing trend of sale-leasebacks. "We are beginning to see more enterprise customers, such as Delta, looking to Digital Realty to help them monetize their real estate assets while continuing to support their critical operations with a well-capitalized, long-term data center owner," said Scott Peterson , chief acquisitions officer of Digital Realty. "Our deep financial resources, acquisitions experience, and reputation with customers and sellers enable us to source and structure these complex transactions while achieving an attractive return for our shareholders."

Digital Realty Trust acquired 3 properties in Paris earlier this year, also structured as a sale-leaseback. Sale-leasebacks allow enterprises to unlock capital for use in other, productive ways. It allows Digital Realty to expand its portfolio in key markets with already revenue-generating facilities.

"The acquisition of Towerview further expands our footprint in a key U.S. market and deepens our relationship with an existing customer—a major commercial airline with an extensive domestic and international network," said Michael F. Foust, chief executive officer of Digital Realty. "We look forward to continuing to work with Delta Air Lines to support their future data center requirements."

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish