Element Critical Lands $67M for Virginia Data Center
Element Critical’s Northern Virginia facility at 7990 Quantum Drive was built in 1978 and acquired by Safanad Industry Capital Internet Infrastructure, L.P. in 2016 from The Meridian Group.
VIENNA, VA—Element Critical, a San Francisco-based provider of data center and IT infrastructure, has secured $67 million to refinance and improve its 199,097-square-foot Tier III data center and office building here.
The financing was provided by an Eagle Bank team led by Bryan Leigh for Element Critical and its sponsors Safanad and Industry Capital and was structured by Philips Realty Capital’s William Lawson, Adam Bieber, and Harmon Handorf.
“On behalf of Element Critical and our sponsors, we were pleased with the market’s reaction to our transformation and enhancement of Quantum Drive,” says Ken Parent, CEO of Element Critical. “We were impressed by both Phillips Realty Capital’s financing team’s ability to tell our story and structure accretive capital and EagleBank’s well-tailored loan that will enable us to reach our goals with this asset.”
Phillips Realty Capital’s Lawson adds, “The capital markets for data center financing are rapidly evolving with more traditional and conventional lenders starting to invest in the space. Element Critical and its sponsors offer a powerful blend of capital expertise and operational excellence within the industry. EagleBank quickly demonstrated their deep knowledge and understanding of the market and provided our sponsor with a terrific structure for the next phase in this asset’s life-cycle.”
Element Critical’s Northern Virginia facility at 7990 Quantum Drive was built in 1978 and acquired by Safanad Industry Capital Internet Infrastructure, L.P. in 2016 from The Meridian Group. At completion, the property will feature nearly 130,000 square feet of raised floor, including an 8 MW expansion of critical power in a N+1 redundancy configuration. The transaction will help fund the expansion plans that began shortly after the 2016 acquisition. The property is predominately leased by publicly traded, investment grade tenants.
“Northern Virginia is the largest and most dynamic data center market in the world. Structuring debt in this critically important market for sponsors with expertise and passion is incredibly rewarding,” says Leigh, SVP commercial real estate at EagleBank. “We are very optimistic about the market and this asset in particular, and we’re committed to deploying more capital into this space.”