Strategic Data Center has acquired a triple net leased data center located in the Denver metropolitan area from Chirisa Investments for approximately $13.5 million.
The 32,000 square foot facility was built in 1999 and is 100% leased to a multi-cloud and managed services provider. Having recently executed a 15-year lease on the property, the tenant has indicated that it plans to spend over $4 million on capital improvements, including $2.5 million to upgrade the data center’s critical capacity from 1.0 MW to 1.5 MW to meet or exceed the criteria of a Tier III data center. With 14 data centers across the U.S., the tenant has built a colocation and cloud service infrastructure platform to service businesses of all sizes with their IT investments while moving to the cloud.
“We believe securing a triple net leased asset with stable, in-place cash flow from an established IT service provider enhances our growing portfolio of essential data center assets,” stated Bryan Marsh, CEO of Strategic Data Center. “By acquiring this 15-year leased asset, we will increase our portfolio’s weighted average lease term from 7.7 years to 9.9 years and expand its geographic diversification.”
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