Strategic Data Center, an investment manager and capital partner focused on acquiring, developing and managing data center real estate assets, has acquired a colocation data center property – Reston Data Center in Northern Virginia – for approximately $8.25 million.
The tier III data center includes 21,100 rentable square feet and is located in one of the largest and most prominent data center markets in the world. The building is 100% leased to a data center service provider that has “over 100 years of collective experience in the data center and IT landscape.”
The data center delivers colocation services to the tenant’s existing client base. With over 10 years of lease term remaining and 3.0% annual rent escalators, the tenant utilizes the Reston Data Center for its Internet infrastructure operations.
“The acquisition of the Reston Data Center highlights our team’s ability to source long-term, stable cash flows in this dynamic sector as we strategically expand our footprint and further diversify our portfolio of data center assets,” said Bryan Marsh, Chief Executive Officer (CEO) of Strategic Data Center, and former Vice President at Digital Realty. “The Northern Virginia market offers a number of benefits to data center operators and this region is vital to our country’s digital infrastructure.”
Financial Commitments of Up To $200M
Reston Data Center is a highly secured facility with redundant designs to ensure 100% uptime. It would meet the high-density computing requirements of government agencies and major employers in the Eastern United States. The property has been consistently updated and maintained over the years with renovations and upgrades made in 2008, 2015 and 2019. The facility also boasts ready access to rich fiber connectivity given its ideal location in the heart of Fairfax County.
Strategic Data Center is the data center real estate division of alternative investment sponsor Strategic Capital Fund Management. Earlier this month it secured a revolving line of credit that converts into a permanent loan from Sunflower Bank, a regional bank with $4 billion in assets. The credit facility will initially provide the ability to borrow up to $25 million. Over time, and subject to certain conditions, Strategic Data Center anticipates increasing the size of the facility to total commitments of up to as much as $200 million.