Digital Realty Trust, Inc.’s DLR joint venture has completed a $135 million secured debt refinancing. The move offered greater financial flexibility by extending the debt maturity profile at a favorable cost.
As per the Zacck’s Investment Research, A PE Investment Research Company, Digital Realty carries a Zacks Rank #3 (Hold). In addition, year to date, shares of Digital Realty climbed 15.0% and outperformed the Zacks categorized REIT and Equity Trust – Other industry’s gain of 4.0%.
Specifically, a $135 million 10-year mortgage was closed on the Westin Building Exchange which is owned in a 50/50 joint-venture partnership with Clise Properties. The property serves as the internet exchange for the Pacific Northwest in Seattle, Washington.
This new mortgage financing has interest at a fixed rate of 3.29% per annum with a maturity in Jun 2027. It is interest-only during the 10-year term, with the entire principal amount due at maturity. This refinancing replaced the previous $101 million secured loan with interest at 6.37% and maturity in Sep 2017.
canada online pharmacies Achieving this refinancing for the Westin Building Exchange marks its value creation. Moreover, significant interest from the lending community denotes the increasing importance of the data centers as an asset category.
http://triangleconst.com/pevok In fact, with growth in cloud computing, Internet of Things and big data, and an increasing number of companies opting for third-party IT infrastructure, data center REITs are experiencing a boom market. In fact, demand has been outpacing supply in top-tier data center markets and despite enjoying high occupancy, these are absorbing new construction at a faster pace. Also, with an improved outlook for economic growth, demand for data centers is likely to climb further.