Non-traded REIT, Carter Validus Mission Critical REIT (CVMC REIT), recently completed a sale-leaseback transaction with IO, a leader in software-defined data center, technology, services, and solutions.
CVCM REIT focuses on acquiring facilities that are purpose-built and essential to the operations of high growth industries. This acquisition is consistent with its strategy.
“We are excited about adding IO to our roster of strong data center tenants in our portfolio and look forward to our continued relationship with them,” said Michael Seton, president and chief investment officer, Carter Validus Advisors, LLC.
The REIT acquired 100% interest in the Arizona-based IO Phoenix and IO Scottsdale data centers for a combined transaction price of $125 million. The data centers were immediately leased back to IO.
“The quality of these two assets will be a great addition to our growing portfolio of high quality mission critical assets,” added Mr. Seton.
“This transaction is aligned with IO’s long-term strategic plan,” commented Anthony Wanger, president of IO. “Partnering with Carter Validus allows IO to concentrate its focus on what we do best: Operating world-class IO data centers for our customers.”
As of June 2014, CVCM REIT is closed to new investors after raising over $1.7 billion in its initial public offering. Shares were distributed by SC Distributors, its managing broker-dealer, which, through an affiliate, agreed to be purchased by RCS Capital Corporation in May of this year.