StratCap’s data center real estate division, StratCap Data Centers, announced last week that it completed the acquisition of a 28,500 square foot data center that is fully-leased on a triple-net basis located 16 miles south of Milwaukee in Franklin, WI.
The property was constructed in 2008, and is located in a growing secondary edge data center market. The building is currently leased to Expedient, a multi-cloud and managed services provider that operates over 20 data center locations and helps its clients transition to the cloud. The data center sits on 2.64 acres and currently has 1.2MW of critical load which is expandable to 2.4MW by building out existing shell space. There’s approximately 15 years remaining on the current lease term, which also includes 2.5 percent annual rent escalators and three 3-year renewal options.
“We were able to diversify our portfolio in an off-market transaction with what we believe is an attractive asset acquired below appraised value, with a high-quality tenant, in a growing data center market,” stated Bryan Marsh, CEO of StratCap Data Centers. “We think the relatively predictable rental revenue from the in-place, long-term lease and the continued geographic diversification of our assets will add value to our overall portfolio.”