The national data center market is hot, with demand for space being driven by cloud service providers, among others. The heat of the market is attracting investors, especially to markets with high barriers to entry.
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Recently Carter Validus Mission Critical REIT II, based in Tampa, acquired the Tempe Data Center from El Dorado Holdings of Scottsdale for $16.4M. The asset has been fully leased since 1997 to T-Mobile U.S., and has been remodeled substantially a number of times, most recently in 2011.
“The property is positioned adjacent to the ‘fiber highway’ of greater Phoenix and there are very few options for future development in the surrounding area,” said Colliers International executive vice president Mindy Korth, in the greater Phoenix office, who repped the seller along with colleague Kirk Kuller.
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“The Tempe Data Center’s high fiber connectivity, tenant quality and the critical nature of its operations make it an ideal investment,” said CV Mission Critical REIT II CEO John Carter.
The 44k SF network-intensive data center is on a 4.2-acre parcel on Broadway Road near I-10 that includes an enclosed equipment yard and redundant power feeds. Comprised of 15k SF of white space, 8,700 SF of office space and 20,500 SF of warehouse space, the building is of concrete and steel frame construction with a glass façade surrounding the office portion and includes a 4,300 SF mezzanine level.
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