Investment firm StratCap has acquired a data center leased to Expedient outside Milwaukee, Wisconsin.
StratCap’s data center real estate division, StratCap Data Centers, this week announced today that it completed the acquisition of a 28,500 square foot (2,650 sqm) data center that is fully leased on a triple-net basis located outside Milwaukee in Franklin. Terms of the deal were not disclosed.
“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,” said 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.”
Sitting on 2.64 acres, the property at 4777 W Ironwood was constructed in 2008 and currently has 1.2MW of critical load which is expandable to 2.4MW by building out existing shell space. There is approximately 15 years remaining on the current lease term, which also includes three 3-year renewal options.
The 28,500 sq ft building offers 5,000 sq ft of data center space, expandable to 10,000 sq ft. Expedient opened the facility last year, after taking over a former Harley-Davidson data center. The motorcycle manufacturer is reportedly still the anchor tenant. NTT previously owned the building, having bought the data center for $8 million from Harley-Davidson in 2012.
Founded in 2009, Strategic Capital rebranded to StratCap earlier this year. The company has previously invested in data centers through a number of funds and vehicles. StratCap’s Strategic Data Center Fund Manager in January acquired an Expedient-occupied data center in Denver, Colorado from Chirisa.
StratCap recently acquired a data center in Jacksonville, Florida, likely leased to T-Mobile.
Last year StratCap set up Strategic Datasphere in September with a plan to spend $1.5 billion on data centers. Datasphere recently acquired a 3MW data center in Cleveland, Ohio, leased to PNC Bank, having bought an E*Trade-occupied data center in Georgia earlier this year.
