Digital Realty Trust continues to expand its presence in North Texas. Earlier this year, the company paid $123 million for Convergence Business Park, a 819,000-square-foot data center and office project in Lewisville. Now it has purchased a 269,600-square-foot facility at 400 S. Akard St. in downtown Dallas.
Known as The Databank Building, the property sits about a mile-and-a-half away from 2323 Bryan St., another DRT asset.
Michael Foust, CEO of the San Francisco-based company, said the Akard Stret property is an ideal complement to its Dallas portfolio, with its extensive network connectivity, large floorplates, high ceilings, and robust floor-loading.
The Databank Building is about 85 percent least to eight tenants; about 85 percent of its rental income is secured by long-term leases from two tenants that have signed commitments through at least 2024, said Scott Peterson, chief acquisitions officer.
Although there’s an attractive value-add opportunity in building out and leasing the available space, he said, “we expect to achieve attractive returns based on our conservative underwriting, which assumes the property continues to operate at its current occupancy throughout the investment horizon.”
According to Digital Realty Trust, the property delivers about 11.7 megawatts of critical load, with the ability to expand to up to 18 megawatts.
The company owns 105 properties totaling 20 million square feet in 31 markets throughout North America, Europe, Singapore, and Australia.