Thursday, May 30, 2013

Digital Realty Buys Six Buildings to Expand Austin Data Centers

Digital Realty Trust has acquired six buildings at the MetCenter Business Park in Austin, Texas for $31.9 million.  The facilities include operating data centers and flex office space totaling approximately 337,000 square feet.  The overall portfolio is currently 90% leased to a variety of data center, biotechnology, technology and/or telecommunications enterprises.

The six buildings are located adjacent to Digital Realty's data center at 7500 Metro Center Drive, near Austin-Bergstrom International Airport.

"The acquisition of this portfolio achieves several key objectives for us," said Scott Peterson, Chief Acquisitions Officer at Digital Realty. "It expands our existing data center footprint in the Austin market, while providing stable cash flow immediately at an attractive going-in cap rate. Second, it provides near-term opportunity to add value by lease existing vacant space. And third, it offers the option to convert a portion of the property to data center space over the longer term as leases expire."