Home News First Data Center Acquisition for Carter Validus Mission Critical REIT II

First Data Center Acquisition for Carter Validus Mission Critical REIT II

Tampa, Florida-based, Carter Validus Mission Critical REIT II (CVMC REIT II), recently acquired its first data center property. The non-traded REIT, which specializes in purpose-built facilities, purchased the Indianapolis Data Center (IDC) in Indianapolis, Indiana on April 1, 2015.

The 43,724 square-foot IDC was purchased from Online Tech, Inc. for $7,500,000 and is leased back to the company. Online Tech provides enterprise cloud and colocation hosting services, with an emphasis on compliance and security.

“We are excited to collaborate with Online Tech and announce our first data center acquisition for CVMC REIT II,” commented Michael Seton, President of CVMC REIT II. He continued, “The IDC’s ideal location, strong tenant, reliability, and state-of-the art technology make this asset a great addition to our portfolio.”

“We believe that acquisitions of high-quality data center real estate properties, like the IDC, align well with our mission critical strategy and add significant value to CVMC REIT II and to our investors,” added John Carter, Chief Executive Officer of CVMC REIT II.

Powered by two independent utility feeds, the IDC supports 3 megawatts of electrical load. The location’s cool climate, low risk of natural disasters, and diverse economy make it an optimal location for secure cloud computing providers.

According to Online Tech, the IDC is one of few U.S. facilities with an all-flash-cloud that meets key regulatory requirements. “Our partnership with Carter Validus allows us to continue investing capital back into our client-facing cloud infrastructure,” stated Mike Klein, co-CEO of Online Tech. “This new next generation analytics cloud, as well as advanced security tools, are but two of the many investments we are continuing to make in the Indianapolis market,” he added.

CVMC REIT II was formed in January 2013 to invest primarily in income-producing commercial real estate, with a focus on data centers and healthcare properties, with long-term net leases to investment grade and creditworthy tenants. The company has an offering size of $2.5 billion and as of March 31, 2015 had accepted investors’ subscriptions for gross proceeds of approximately $174,271,000.