ASHBURN, VA—Griffin Capital Essential AssetREIT has acquired an 80% stake in a data center owned bySan Francisco-based Digital Realty, which will keep a 20% interestin the property. The 80% stake traded for $148.4million, which Griffin is funding via equity and loanproceeds. This is the Segundo, CA-based REIT's first investment ina data center facility.

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The approximately 132,280 square foot data center was developedin 2009 and has 16 megawatts of utility capacity and 9 megawatts ofIT load capacity powered by the dedicated 80-megawatt GreenwaySubstation located within the Ashburn Campus. Thisfacility is 100% leased with a weighted average remaining leaseterm of approximately seven years.

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Digital Realty will continue to manage the property.

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The 132,280 square foot data center, which is valued atapproximately $185.5 million according to Digital Realty, isexpected to generate forward 12-month cash net operating income ofapproximately $13.1 million, representing a 7.05% cap rate.

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The transaction, structured as a joint venture, also included a$102.0 million five-year bank loan at LIBOR plus 225 basis points,for a loan-to-value ratio of approximately 55%.

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The transaction generated net proceeds to Digital Realty ofapproximately $168.4 million.

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Loudoun County is arguably the data centercapital of the US. It is home to over 40 mission critical datacenter facilities; regionally, data centers in Northern Virginiaencompass over 9.8 million square feet with more than 50% of allglobal internet traffic passing through the market via the MAE-Eastinternet exchange point.

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