Carter Validus Mission Critical REIT Sells Two Data Centers for $85 Million

Carter Validus Mission Critical REIT Inc., a publicly registered non-traded real estate investment trust, recently sold two data center properties for $85 million.

On June 11, 2018, the REIT sold the Milwaukee Data Center to Landmark Infrastructure Operating Company LLC for $21 million. The facility, located in Hartland, Wisconsin, approximately 30 miles from Milwaukee, is situated on eight acres of land and totals nearly 60,000 square feet.

The total net book value of the Milwaukee Data Center was approximately $17.4 million as of March 31, 2018, the company noted.

On June 15, 2018, the company also sold the Alpharetta Data Center II to Alpharetta DC LLC for $64 million. The facility consists of approximately 165,000 square feet, including 50,400 square feet of powered-shell enterprise data center space, 55,000 square feet of office and administration space, and 60,000 square feet of supporting infrastructure space. The property is situated on more than 14 acres of land in Atlanta suburb of Alpharetta, Georgia.

The total net book value of the Alpharetta Data Center II was approximately $55.1 million as of March 31, 2018.

“Consistent with our strategy of pursuing liquidity for our data center assets, we have successfully monetized two of our three remaining data center properties,” stated Michael Seton, chief executive officer and president of the company.

He added, “Our board of directors is actively evaluating how to best deploy the proceeds from these transactions, after any required paydown of the company’s debt obligations, including, but not limited to, further reducing the leverage of the company and possibly paying a special distribution to our stockholders.”

Carter Validus Mission Critical REIT’s remaining data center property, the Andover Data Center, is currently under contract to be sold and is anticipated to close in the third quarter of this year.

Carter Validus Mission Critical REIT invests in net leased data center and healthcare assets and owns a $1 billion portfolio comprised of 63 healthcare properties and one data center property. The offering was declared effective by the SEC in December 2010 and closed in June 2014 after raising more than $1.7 billion in investor equity, according to Summit Investment Research.




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