Digital Realty Trust, an Austin-based REIT, is selling the majority interest in two neighboring data centers located in Elk Grove Village, IL to GI Partners, a San Francisco-based private equity firm. The deal is being financed with $450 million in debt and has been reported by Crain’s Chicago Business as one of the biggest local tech real estate deals seen for years.
It remains unclear how large a stake GI Partners are buying or what they are paying for it; however Crain’s reported that based on current lending standards this transaction could value both properties at more than $700 million.
Chicago currently stands as Digital Realty’s second largest market after Northern Virginia with 10 properties accounting for 8.4% of its total annualized rent according to their 2022 annual report filing; having invested over $2.4 billion into their portfolio which encompasses 3.4 million square feet across these locations combined .
