Carter Validus Mission Critical REIT II Buys Data Center and Healthcare Properties for $64.5 Million
Carter Validus Mission Critical REIT II Inc., a publicly registered non-traded real estate investment trust, recently purchased two properties, a Silicon Valley data center and a Texas specialty hospital.
Carter Validus Mission Critical REIT II Inc., a publicly registered non-traded real estate investment trust, recently purchased two properties, a Silicon Valley data center and a Texas specialty hospital, for a combined $64.5 million.
The company acquired the San Jose Data Center comprised of enterprise and colocation space located in San Jose, California for $49.15 million, excluding acquisition fees and costs.
Built in 1999 and renovated in 2005, the San Jose Data Center totals 76,400 rentable square feet and sits on more than four acres. The facility is 100 percent leased to a telecommunications company with a remaining lease term of more than seven years. San Jose is in the heart of Silicon Valley, the second largest data center market in the U.S.
“This acquisition underscores the expansion of our data center footprint making this our fifth data center acquisition in California, and further expanding our presence in Silicon Valley,” said Michael Seton, chief executive officer and president.
The company also purchased the Oceans Katy Behavioral Health Hospital in Katy, Texas for approximately $15.3 million, excluding acquisition fees and costs.
Oceans Katy Behavioral Health Hospital is a 34,300-square-foot single-tenant hospital situated on nearly five acres. Katy is located approximately 29 miles west of Houston in the fifth largest metropolitan statistical area in the U.S.
The facility is 100 percent leased to Oceans Behavioral Hospital of Katy LLC, with a remaining lease term of 12 years. Oceans Behavioral Hospital of Katy provides in-patient and out-patient services addressing the behavioral health needs of older adults and seniors.
Carter Validus Mission Critical REIT II invests in net leased data center and healthcare assets and raised approximately $1.3 billion in investor equity since launching its primary offering in May 2014, according to Summit Investment Research. The REIT’s $1.6 billion portfolio was comprised of 73 properties (27 data center and 46 healthcare properties) as of May 24, 2018.
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