Digital Realty Buys Data Centers
July 28, 2006 — (WEB HOST INDUSTRY REVIEW) — Data center operator Digital Realty Trust (digitalrealtytrust.com) announced on Thursday it has acquired the Internet gateway for the Phoenix metropolitan area and data center facilities in Fort Worth Texas and Amsterdam, Netherlands. The total purchase price paid for the three acquisitions was approximately $236.9 million.
The largest acquisition is a 347,000 square-foot Internet gateway located Phoenix, Arizona. It serves as the primary hub for Internet traffic in the greater Phoenix area and is the premier facility for corporate data center applications in the high-demand Phoenix market.
The second acquisition consists of twin 28,000 square-foot data center buildings located in Amsterdam. The buildings were constructed in 2000 as data centers specifically for a major European IT services company, which occupies 100 percent of the property through 2015.
The third acquisition is the sale-leaseback of a highly improved data center facility located in Fort Worth. The property was built in 2000 and totals 263,700 square feet consisting of a single-story 109,500 square-foot fully improved data center, a two-story 39,000 square-foot annex containing office and conference facilities and an 115,500 square-foot warehouse. The facility is currently leased to Savvis for a 15-year term.
“The acquisition of Phoenix’s premier Internet gateway facility represents a very significant addition to our portfolio. It enhances our presence in this important top tier market and expands our ability to provide exceptional data center and collocation services to our corporate and network customers,” says Michael Foust, Digital Realty Trust’s CEO. “There are over 40 different fiber carriers operating in the facility, and with the substantial power available at the property, the building accommodates mission critical applications for a wide variety of corporate users. Additionally, the acquisition of the highly improved data centers in Fort Worth and Amsterdam further expands our footprints in these key markets while adding to our portfolio of stabilized, income-producing properties.”
Digital Realty Trust also announced the sale of Stanford Place II, a 366,000 square-foot suburban office building located in the Denver Tech submarket of Denver, Colorado. After the successful execution of the property’s re-tenanting and leasing strategy it was sold for $60.4 million producing an approximate $17.9 million profit for the company.
