Rockwood Capital has agreed to sell five data centers in California, Arizona and Virginia to US REIT Digital Realty Trust for $725 million.
The White Plains, New York-based firm is selling its Rockwood/365 Main portfolio, compromising more than 919,000-square-feet of space, to DRT, in a deal that is expected to close at the beginning of July.
Rockwood and 365 Main originally acquired 720 2nd Street, 4030-4050 Lafayette Center Drive and 2121 South Price Road between 2006 and 2007 for an estimated $119.5 million, according to data provider Real Capital Analytics. 365 Main Street and 2260 East El Segundo Boulevard were developed in 2001 and 2000, respectively.
The deal also sees DRT acquire the rights to develop an extra 250,000-square-feet of space at the Chandler property, as well as $13 million of “uninstalled data centre infrastructure improvements”.
DRT said it would pay $725 million for the five properties, leased to more than 200 tenants, and would be funded by cash, a revolving credit facility and the sale of debt or equity securities.
Credit Suisse Securities and Citi acted as financial advisors to DRT, which has around 90 technology-related properties across the US and Europe following the transaction, the statement added.