Digital Realty Trust (NYSE:DLR, news, filings) kicked of 2012 by tacking on a yet more colocation space to its extensive portfolio. Today the data center REIT announced two transactions that bring 489,000 square feet into its orbit.
First, they have closed the purchase of 360 Spear Street, which happens to be adjacent to their 365 Main Street facility in San Francisco. 365 Main is a property they just bought a year and a half ago from Rockwood Capital as part of a $725M deal. Todays $85M purchase of 360 Spear Street adds another 155,000 square foot to their presence in the city. As is, it's already fully leased, but there are expansion possibilities.
And second, they bought a three story, 334,000 square foot data center next to the airport in Atlanta for $63M. The transaction is a sale/leaseback where the former airline owner of the facility will continue to occupy half of the space under a 10 year lease, while the other half is already leased to a a provider of transaction processing to the travel industry. No new space there to sell, but more property to manage of course.
With the migration to cloud-based infrastructure in full swing, the data center industry is sure to have a busy year from the property development level all the way up the food chain.