Digital Realty Trust, an Austin-based REIT, is selling a majority interest in two data centers located in Elk Grove Village, IL: a 485,000-square-foot building at 2200 Busse Road and an adjacent 305,000-square-foot property at 1400 E. Devon Avenue. This massive deal marks one of the largest local tech real estate deals in years and highlights the continued strength of the data center sector even amid a broader slowdown in commercial real estate markets. Financing for this transaction comes from three banks: Barclays, Citigroup and Morgan Stanley with Eastdil Secured brokering the joint venture between Digital Realty and GI Partners as well as arranging debt financing to cover $450 million over 10 years.
Elk Grove Village has become known for its concentration of data centers due to its favorable location near major transportation hubs along with access to abundant power sources which make it attractive for large scale operations such as these two properties sold by Digital Realty Trust. This recent transaction further confirms that demand remains strong within this sector despite current market conditions making it one of many noteworthy tech real estate deals seen throughout 2020 so far..
