Digital Realty Acquires Redevelopment Property In Metro New York
SAN FRANCISCO, Nov. 27, 2012
SAN FRANCISCO, Nov. 27, 2012 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE:
DLR), a leading global provider of data center solutions, announced today it
has completed the acquisition of 701 Union Boulevard in Totowa, New Jersey, a
271,000 square foot redevelopment property located on 34.31 acres of land
approximately 20 miles west of the George Washington Bridge. The purchase
price was approximately $16.8 million.
"With our current portfolio in the New York Metro market nearing capacity,
this new site enables us to add inventory to meet future demand for highly
reliable data center space in this key corporate enterprise market," said
Michael F. Foust, Chief Executive Officer of Digital Realty. "Its location
also adds geographic diversity for customers looking to deploy mission
critical business applications outside of Manhattan."
Digital Realty plans to redevelop the existing building to accommodate 15.75
megawatts of critical IT load. Existing area substations will be utilized to
supply power to the initial phase of redevelopment. For future phases, the
Company plans to construct a 50 MVA onsite substation to support the
development of additional data center capacity at the site.
"Based on our conservative underwriting, we expect to generate attractive risk
adjusted returns on this investment," added Scott Peterson, Chief Acquisitions
Officer of Digital Realty. "With the redevelopment opportunity of the existing
building coupled with the additional land available for new development, we
believe this investment has considerable upside potential."
Digital Realty's Turn-Key Flex℠ data center solution is a modular approach to
delivering secure, enterprise quality data center space to meet customers'
just-in-time requirements. Designed to provide maximum flexibility,
reliability and efficiency, each Turn-Key Flex facility comes fully
commissioned with its own dedicated electrical and mechanical infrastructure.
Utilizing Digital Realty's proprietary POD Architecture® and extensive supply
chain, Digital Realty's next generation Turn-Key Flex data centers are
designed for the future and ready today.
About Digital Realty
Digital Realty Trust, Inc. focuses on delivering customer driven data center
solutions by providing secure, reliable and cost effective facilities that
meet each customer's unique data center needs. Digital Realty's customers
include domestic and international companies across multiple industry
verticals ranging from information technology and Internet enterprises, to
manufacturing and financial services. Digital Realty's 110 properties,
excluding three properties held as investments in unconsolidated joint
ventures, comprise approximately 21.2 million square feet as of October 26,
2012, including 2.2 million square feet of space held for redevelopment.
Digital Realty's portfolio is located in 32 markets throughout Europe, North
America, Asia and Australia. Additional information about Digital Realty is
included in the Company Overview, which is available on the Investors page of
Digital Realty's website at http://www.digitalrealty.com.
Safe Harbor Statement
This press release contains forward-looking statements which are based on
current expectations, forecasts and assumptions that involve risks and
uncertainties that could cause actual outcomes and results to differ
materially, including statements related to our acquisition of the
redevelopment property located in Totowa, New Jersey, redevelopment plans,
expected IT load and expected returns on investment. These risks and
uncertainties include, among others, the following: the impact of the recent
deterioration in global economic, credit and market conditions, including the
downgrade of the U.S. government's credit rating; current local economic
conditions in our geographic markets; decreases in information technology
spending, including as a result of economic slowdowns or recession; adverse
economic or real estate developments in our industry or the industry sectors
that we sell to (including risks relating to decreasing real estate valuations
and impairment charges); our dependence upon significant tenants; bankruptcy
or insolvency of a major tenant or a significant number of smaller tenants;
defaults on or non-renewal of leases by tenants; our failure to obtain
necessary debt and equity financing; increased interest rates and operating
costs; risks associated with using debt to fund our business activities,
including re-financing and interest rate risks, our failure to repay debt when
due, adverse changes in our credit ratings or our breach of covenants or other
terms contained in our loan facilities and agreements; financial market
fluctuations; changes in foreign currency exchange rates; our inability to
manage our growth effectively; difficulty acquiring or operating properties in
foreign jurisdictions; our failure to successfully integrate and operate
acquired or redeveloped properties or businesses; risks related to joint
venture investments, including as a result of our lack of control of such
investments; delays or unexpected costs in development or redevelopment of
properties; decreased rental rates or increased vacancy rates; increased
competition or available supply of data center space; our inability to
successfully develop and lease new properties and space held for
redevelopment; difficulties in identifying properties to acquire and
completing acquisitions; our inability to acquire off-market properties; our
inability to comply with the rules and regulations applicable to reporting
companies; our failure to maintain our status as a REIT; possible adverse
changes to tax laws; restrictions on our ability to engage in certain business
activities; environmental uncertainties and risks related to natural
disasters; losses in excess of our insurance coverage; changes in foreign laws
and regulations, including those related to taxation and real estate ownership
and operation; and changes in local, state and federal regulatory
requirements, including changes in real estate and zoning laws and increases
in real property tax rates. For a further list and description of such risks
and uncertainties, see the reports and other filings by the Company with the
U.S. Securities and Exchange Commission, including the Company's Annual Report
on Form 10-K for the year ended December 31, 2011 and Quarterly Reports on
Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September
30, 2012. The Company disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.
For Additional Information:
A. William Stein Pamela M. Garibaldi
Chief Financial Officer and Vice President, Investor Relations and
Chief Investment Officer Corporate Marketing
Digital Realty Trust, Inc. Digital Realty Trust, Inc.
+1 (415) 738-6500 +1 (415) 738-6500
SOURCE Digital Realty Trust, Inc.
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