Digital Realty Trust (NYSE:DLR, news, filings) is betting big on Dallas. The data center REIT has purchased the 819,000 square foot Convergence Business Park in the suburb of Lewisville for $123.0M. The property as currently built out is already 99% leased, with 35% of that leased as datacenter space to just three tenants and the rest as lab/office space to another five.
But with 168 acres, 10 buildings, and 39 of those acres open for future development, this may start off as stabilized cash flow but won't stay that way. There is room for as much as 700,000 square feet of new space, and they have TNMP putting in two additional transformers capable of providing 67MW of power beyond the 16.5MW already in place.
That's a lot of space, or at least it will be after a lot of construction first. Another day another facility to build I guess, the REIT business just keeps on rolling. The previous owner seems to be Brookfield Asset Management and those eight tenants include Fidelity, CyrusOne, and Tribune Co.
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