Carter Validus Mission Critical REIT is considering a sale that could value the hospital and data center-focused real estate investor at more than $3.5 billion, Reuters reported.
For the last seven years the non-traded real estate investment trust has been buying medical facilities and data centers. Now, it is thinking of splitting its assets into separate hospital and data center portfolios and selling them separately, sources familiar with the deliberations who were not identified told the wire news service.
The REIT’s data center acquisition strategy has been focused on buying fully occupied facilities, leased to enterprise end users or service providers.
The 20 or so data center assets could be sold for more than $1 billion, the sources said. They include data centers occupied by IO in Arizona, Internap and Atos data centers in Texas, an Infocrossing data center in New Jersey, and AT&T data centers in California, Tennessee, and Wisconsin.
Analysts and real estate brokers have been forecasting a data center acquisition-heavy 2017 for the US market, and so far there has been no shortage of deals closed.
Digital Bridge, the investor that acquired DataBank last year, bought Utah’s C7 Data Centers and two 365 Data Centers facilities, in Cleveland and Pittsburgh, in January; QTS acquired a large Dallas data center from the insurance company HCSC; and CyrusOne bought data centers in north Carolina and New Jersey.
Digital Bridge is also rumored to be mulling acquisition of Silicon Valley’s Vantage Data Centers.
Carter Validus has started another data center REIT, called Carter Validus Mission Critical REIT II, which has been pursuing a similar acquisition strategy.