Digital Keeps Buying With Deals in Dallas, Phoenix
April 3rd, 2013 By: Jason Verge
Digital Realty keeps the acquisitions going, acquiring a data center in Dallas and a future development site in Phoenix, Arizona, targeting two very hot markets showing incredible growth right now. The Dallas acquisition continues the trend of buying fully leased properties in attractive markets, while Phoenix adds future inventory to a market experiencing a lot of demand.
The Dallas Texas facility is an operating, 61,750 square foot data center and was acquired for $8.5 million. It’s a single tenant facility leased on a long term basis to an undisclosed provider of business, information technology and communications solutions, so this is another acquisition of a fully leased property following the one earlier this week in Minnesota. The facility is approximately 3.5 miles from Digital Realty’s Digital Dallas Datacenter Campus. Dallas is, of course, a major hosting hub and has long been a hotbed of data center activity.
“The acquisition of the Dallas facility is a continuation of our strategy of adding income-producing data center facilities to our global portfolio that offer attractive returns for our shareholders,” said Scott Peterson, Chief Acquisitions Officer of Digital Realty.
The second property acquired is in Phoenix, Arizona, and consists of 3 buildings totaling around 227,000 square feet that sold for $24 million. The first 109,000 square foot building is going into Digital’s inventory of space held for development. Subject to market conditions, it’s capable of supporting 7.2 megawatts of IT capacity. The seller of this property and current tenant occupies the remaining two office buildings in the deal on a short-term lease basis.
Phoenix has been home to a lot of recent data center activity (check out the Phoenix Region on DCK), so it’s definitely an area where Digital wants to get its ducks in a row. “The acquisition of the Phoenix site adds future inventory to a market where we have experienced significant absorption at our existing facilities coupled with continued strong demand from enterprise customers,” said Peterson.
“Both acquisitions expand our footprint in markets where we see positive demand from customers for our flexible data center solution offerings,” concludes Peterson.