Carter Validus Mission Critical REIT (CVMC) recently acquired the Ascent CH2 Data Center Facility in the Chicago suburb of Northlake, Illinois. The non-traded REIT has a focus on acquiring facilities that are purpose-built and essential to the operations of high growth industries. CVMC’s managing broker-dealer is SC Distributors, which RCS Capital Corp agreed to purchase through the acquisition of Validus Strategic Capital Partners.
Ascent is a leading provider of comprehensive data center solutions. CVMC purchased the 251,141 square foot data center from Ascent for $211.7 million, plus closing costs, with proceeds from its ongoing initial public offering. The REIT paid an acquisition fee of $4,234,000, or 2% of the purchase price, to its advisor, Carter/Validus Advisors, LLC
Situated on approximately 19 acres of land, the facility was constructed in 1964 and converted to a data center in 2010. As of May 20, 2014, the data center was 59.9% leased to four tenants. Ascent will continue to work directly with the current and future tenants and will continue developing and improving the facility with capital from CVMC. The CH2 data center is designed for a variety of customers with different computing and power density needs. It can accommodate users with critical power requirements from less than 1 MW up to 20 MW of gross power.
“Given this property’s desirable location and long term leases with high-quality tenants, we believe that CH2 is a great addition to our growing portfolio of mission critical real estate assets. We look forward to our relationship with Ascent, a recognized leader in the data center industry, who will continue to manage and develop the property for CVMC REIT,” commented Michael Seton, President of Carter/Validus Advisors, the advisor to CVMC.
“CH2 represents our largest single portfolio acquisition to date and demonstrates our continuing commitment to the data center space,” added CVMC’s CEO, John Carter.
CVMC is scheduled to close to new investors June 6, 2014.