{"id":1004156172,"date":"2016-10-20T04:00:54","date_gmt":"2016-10-20T12:00:54","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004156172"},"modified":"2020-04-14T02:11:05","modified_gmt":"2020-04-14T10:11:05","slug":"la-area-att-data-center-trades-for-80m","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/la-area-att-data-center-trades-for-80m\/","title":{"rendered":"LA-Area AT&T Data Center Trades for $80M"},"content":{"rendered":"

By Scott Baltic, Contributing Editor<\/p>\n

\"Michael<\/a>

Michael Seton, president, CVMC REIT II<\/p><\/div>\n

Hawthorne, Calif.<\/strong>\u2014Tampa, Fla.-based\u00a0Carter Validus Mission Critical REIT II Inc.<\/a> has acquired the 288,000-square-foot building housing the AT&T Hawthorne Data Center in metro Los Angeles for about $79.5 million.<\/p>\n

The single-story, powered shell data center sitting on a 15.87-acre site features an on-site substation that delivers a 12,470-volt, 22.5 MVA commercial power service feed. Security features include an 8-foot steel fence with two guarded gates, 24-hour on-site security staff, closed-circuit monitors, key-card access, biometrics scanner, a mantrap and alarmed doors.<\/p>\n

The purchaser will assume the existing absolute net lease with AT&T Corp., a wholly owned subsidiary of AT&T Inc. and a leading provider of IP-based services to multinational companies.<\/p>\n

\u201cThe acquisition of the AT&T Hawthorne Data Center represents an opportunity to invest in a mission critical property with a strong brand affiliation. We (\u2026) are excited to expand our already important relationship with AT&T Corporation by adding this high-quality data center to our growing portfolio,\u201d Michael Seton, president of CVMC REIT II, said in a prepared statement.\u00a0CVMC REIT II declined to comment further on the transaction.<\/p>\n

The seller was not identified, but the Los Angeles Times<\/em> had reported<\/a> in March 2002 that Israeli CRE firm Red Sea Group had purchased the property, a former Northrop Grumman Corp. facility built in 1963, for more than $43 million.<\/p>\n

In \u201cpowered shell\u201d data centers like this one, \u201cthe tenant owns the costly data center infrastructure (e.g., generators, cooling equipment), while the landlord owns the land and building shell,\u201d explained Lukas Hartwich, a senior analyst with Green Street Advisors. Leases for such properties are typically triple-net, as is the case here, he told Commercial Property Executive<\/a><\/em>.<\/p>\n

Though powered shells are attractive investments, they are less common than \u201cturn-key\u201d data centers were the landlord funds the costly improvements, Hartwich continued. \u201cPowered shells tend to have \u2018stickier\u2019 tenants, because their investment in the space makes them less likely to move out at the end of a lease,\u201d he added.\u00a0The AT&T lease does not expire until May 2026, according to an SEC filing by CVMC REIT II.<\/p>\n

In early August,the REIT purchased a $116.5 million<\/a>, 328,000-square-foot healthcare portfolio consisting of two acute-care hospitals and seven integrated medical facilities, all in Oklahoma and all affiliated with Healthcare Partners Investments Inc.<\/p>\n

Since the announcement of its IPO in May 2014, the REIT has issued about $755.5 million<\/a> in shares of common stock, out of a planned $2.35 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"

The purchaser will assume the existing absolute net lease with AT&T Corp., which expires in May 2026.<\/p>\n","protected":false},"author":882,"featured_media":1004506864,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21755,21743,21808,1594,21742,15],"tags":[],"class_list":["post-1004156172","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-data-centers","category-deals","category-featured","category-los-angeles","category-latest","category-west"],"acf":[],"yoast_head":"\nLA-Area AT&T Data Center Trades for $80M - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/la-area-att-data-center-trades-for-80m\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"LA-Area AT&T Data Center Trades for $80M\" \/>\n<meta property=\"og:description\" content=\"The purchaser will assume the existing absolute net lease with AT&T Corp., which expires in May 2026.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/la-area-att-data-center-trades-for-80m\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2016-10-20T12:00:54+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-04-14T10:11:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/03\/Michael-Seton-president-CVMC-REIT-II.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"300\" \/>\n\t<meta property=\"og:image:height\" content=\"200\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/la-area-att-data-center-trades-for-80m\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/la-area-att-data-center-trades-for-80m\\\/\"},\"author\":{\"name\":\"Scott Baltic\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/61ac1450f3ffaa0e850b834c28526555\"},\"headline\":\"LA-Area AT&T Data Center Trades for $80M\",\"datePublished\":\"2016-10-20T12:00:54+00:00\",\"dateModified\":\"2020-04-14T10:11:05+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/la-area-att-data-center-trades-for-80m\\\/\"},\"wordCount\":432,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/la-area-att-data-center-trades-for-80m\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2021\\\/03\\\/Michael-Seton-president-CVMC-REIT-II.jpg\",\"articleSection\":[\"Data Centers\",\"Deals\",\"Featured\",\"Los Angeles\",\"News\",\"West\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/la-area-att-data-center-trades-for-80m\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/la-area-att-data-center-trades-for-80m\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/la-area-att-data-center-trades-for-80m\\\/\",\"name\":\"LA-Area AT&T Data Center Trades for $80M - 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