Norwalk Data Center Purchased for $58.9 M

Norwalk Data Center Purchased for $58.9 M

The Tampa, Florida-based Carter Validus Mission Critical REIT II acquired a major Norwalk data center in March 2017 for exactly $58,884,953. The property, located at 10 Norden Place #B and more commonly known as 6 Norden Place, boasts 167,691 rentable square feet and is considered the largest data center in the state. In a 5/15/2017 press release, the public, non-traded company disclosed that the acquisition was part of a five-property portfolio of healthcare and data centers totaling over $141.5 million. The seller in the transaction is Fortis Property Group, who has owned the property and land since 2005.

The center was built in 2013 amid a growing demand for secure storage and reliable file backup in an increasingly digital age.  The facility’s power is provided through three separate feeds from two distinct utility companies, Connecticut Light and Power and Third Taxing District. The property also benefits from its close proximity to financial hubs in New York and Fairfield County. The building is described as a powered-shell collocation data center with the following approximated interior layout:

  • 75,000 square feet of data center space
  • 30,000 square feet of office space
  • 62,000 square feet of supporting infrastructure

At the time of sale, the data center was 100% leased by Cervalis, LLC, a subsidiary of CyrusOne, Inc. (NASDAQ: CONE). The tenant is described as a collocation, cloud computing and managed services company that is a premier provider of IT infrastructure solutions. They signed a long-term lease of the space in August 2012 directly after securing a $75 million loan package to outfit the entire interior with computers, work stations, and power generators. The lease is set to expire on March 31, 2035.

Source(s): CoStar, Fortis Property Group, Press Release, SEC Filing