CHICAGO—Both the US in general, and the Chicago market inparticular, are poised for a boom in data centers, andREITs have started to sit up and take notice.

|

Ascent, for example, one of the nation'slargest providers of data center solutions, just sold itsCH2 Data Center Facility in suburban Northlake toCarter Validus Mission Critical REIT, Inc. for$211.7 million. As part of the deal, CVMC REIT will provide newcapital for an expansion of the facility and Ascent will continueto operate it and manage all development, design, construction andengineering.

|

Chicago's reputation in the high-tech world has strengthened inrecent years and the metro area has become one of the top regionsfor data centers, along with New York, San Francisco, Atlanta,Dallas and Washington DC, according to PatrickDavis, a senior design phase manager withMortenson Construction who specializes in datacenters.

|

“Of all of these cities, we have the lowest vacancy rates in ourdata centers,” he told GlobeSt.com, below five percent. And thegrowing use of computerized medical records, cloud computing andother factors has caused projections for “the demand curve for datacenters to just go out of control.”

|

According to Phil Horstmann, chief executiveofficer of Ascent, this new partnership will allow the company “toconcentrate on building out our current portfolio of data centerfacilities and increase strategic investment in the development offuture locations. CVMC REIT's commitment to the data center spaceis the perfect complement to our design, construction andoperational capabilities, strengthening our ability to providecurrent and future customers with the innovative solutions andmission-critical services they demand.”

|

The Northlake facility has 250,000-square-feet and featuresAscent's Dynamic Data Center Suite model andcolocation suites. It can accommodate a diverse range of tenants,from those that need less than 1 MW of gross power, to those thatneed 20 MW.

|

“Given this property's desirable location and long term leaseswith high-quality tenants, we believe that CH2 is a great additionto our growing portfolio of mission critical real estate assets,”stated Michael Seton, president ofCarter/Validus Advisors, the advisor to CVMCREIT.

|

“CH2 represents our largest single portfolio acquisition to dateand demonstrates our continuing commitment to the data centerspace,” said John Carter, chief executive officerof CVMC REIT.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Brian J. Rogal

Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.