Digital Realty Trust Acquires Two Fully Leased Datacenter Facilities in Silicon Valley
Digital Realty Trust Acquires Two Fully Leased Datacenter Facilities in
Silicon Valley
Acquisition expands Company's footprint by 185,000 square feet in top tier
datacenter market
SAN FRANCISCO, Nov. 3 /PRNewswire-FirstCall/ -- Digital Realty Trust, Inc.
(NYSE: DLR), the world's largest wholesale datacenter provider, announced
today that it acquired two fully leased datacenter facilities, 1350 Duane
Avenue, and 3080 Raymond Street, located in Santa Clara, California. The
purchase price was $90.5 million. The Company expects the blended cash cap
rate for this acquisition to be consistent with its 2009 guidance, as
discussed on its last earnings call.
In addition, the Company assumed a $52.8 million mortgage upon completion of
the transaction. The loan currently bears interest at 5.423% and is
interest-only through the initial maturity date of October 1, 2012, excluding
extension options.
"This acquisition illustrates the continued execution of our strategy to grow
FFO by investing in income producing facilities at attractive risk-adjusted
returns," commented Scott Peterson, Senior Vice President of Acquisitions for
Digital Realty Trust. "The buildings are strategically located near our
existing Santa Clara facilities and should benefit from our operational
efficiencies. They are situated on a 5.56 acre site across from a Silicon
Valley Power substation with 17.2 MVA of current power capacity expandable to
22.5 MVA."
The larger building, 1350 Duane Avenue, consists of 160,000 square feet of
highly improved datacenter space. The entire building is leased on a triple
net basis to a major telecommunications firm. In 2004 the tenant subleased
the building to a leading colocation and IT services provider. The second
property, 3080 Raymond Avenue, totals 25,000 square feet and is leased on a
triple net basis to a local provider of Internet services and applications to
business throughout California.
Digital Realty Trust Turn-Key Datacenter® facilities provide state-of-the-art
environments for supporting mission critical infrastructure, with advanced
cooling, power, redundancy, and sustainability features to ensure that
critical applications are available while optimizing energy efficiency.
Digital Realty Trust's Turn-Key Datacenters® are scalable from hundreds of
kilowatts of IT load to megawatts of IT load and are located in markets
throughout North America and Europe. Each Turn-Key Datacenter® facility is
physically secure and features a state-of-the-art power and cooling
architecture that has been optimized for green operation. Every Turn-Key
Datacenter® is built using the company's proprietary POD Architecture® and
uses metered power to ensure that clients pay only for the power that they
use.
About Digital Realty Trust, Inc.
Digital Realty Trust, Inc. owns, acquires, redevelops, develops and manages
technology-related real estate. The Company is focused on providing Turn-Key
Datacenter® and Powered Base Building® datacenter solutions for domestic and
international tenants across a variety of industry verticals ranging from
information technology and Internet enterprises, to manufacturing and
financial services. Digital Realty Trust's 79 properties, excluding one
property held as an investment in an unconsolidated joint venture, contain
applications and operations critical to the day-to-day operations of
technology industry tenants and corporate enterprise datacenter tenants.
Comprising approximately 14.0 million rentable square feet as of November 3,
2009, including 1.9 million square feet of space held for redevelopment,
Digital Realty Trust's portfolio is located in 27 markets throughout North
America and Europe. For additional information, please visit Digital Realty
Trust's website at http://www.digitalrealtytrust.com.
Forward-Looking Statement
This press release contains forward-looking statements which are based on
current expectations, forecasts and assumptions that involve risks and
uncertainties that could cause actual outcomes and results to differ
materially, including statements related to expected cash cap rates and access
to additional power. These risks and uncertainties include the impact of the
current deterioration in the global economy; future income, expenses,
including property taxes, and capital expenditures for the properties being
acquired being consistent with our due diligence and underwriting
expectations; bankruptcy or insolvency of one or more tenants at the
properties being acquired; the downturn of economic conditions in our
geographic markets, including the markets where the properties being acquired
are located; decreases in information technology spending, including as a
result of economic slowdowns or recession; adverse economic or real estate
developments in our industry or the industry sectors that we sell to;
decreases in real estate valuations and resulting impairment charges; our
dependence upon significant tenants; defaults on or non-renewal of leases by
tenants; our failure to obtain necessary debt and equity financing for
refinancing; increased interest rates and operating costs; our failure to
repay debt when due or our breach of covenants or other terms contained in our
loan documents; financial market fluctuations; our ability to manage our
growth effectively; our failure to successfully operate acquired or
redeveloped properties; delays or unexpected costs in development or
redevelopment of properties; decreased rental rates or increased vacancy
rates; increased competition or available supply of data center space;
inability to successfully redevelop and lease new properties and space held
for redevelopment; difficulties in identifying properties to acquire and
completing acquisitions; our inability to acquire off-market properties; our
inability to comply with the rules and regulations applicable to public
companies; our failure to maintain our status as a REIT; possible adverse
changes to tax laws; restrictions on our ability to engage in certain business
activities; environmental uncertainties and risks related to natural
disasters; changes in foreign laws and regulations, including those related to
taxation and real estate ownership and operation; changes in real estate and
zoning laws; and increases in real property tax rates. For a further list and
description of such risks and uncertainties, see the reports and other filings
by the Company with the United States Securities and Exchange Commission,
including the Company's annual report on Form 10-K for the year ended December
31, 2008 and the Company's quarterly reports on Form 10-Q for the quarters
ended March 31, 2009 and June 30, 2009. The Company disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
For Additional Information:
A. William Stein Pamela A. Matthews
Chief Financial Officer and Director of Investor Relations
Chief Investment Officer Digital Realty Trust, Inc.
Digital Realty Trust, Inc. +1 415-738-6500
+1 415-738-6500
SOURCE Digital Realty Trust, Inc.
A. William Stein, Chief Financial Officer, Chief Investment Officer, or Pamela
A. Matthews, Director of Investor Relations, both of Digital Realty Trust,
Inc., +1-415-738-6500
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