Carter Validus Agrees to Buy Data Center Space at 180 Peachtree

Last week, Carter Validus Mission Critical REIT, Inc. filed a report with the Securities and Exchange Commission for its pending acquisition of 180 Peachtree. See the filing below.

On November 18, 2011, through a wholly own subsidiary, Carter/Validus Operating Partnership, LP (“CVOP”), the operating partnership of Carter Validus Mission Critical REIT, Inc. (the “Company”), entered into an agreement with Carter Validus Properties, LLC (the “Assignor”), an affiliated entity of the Company, to assume all of the Assignor’s right, title and interest in a Purchase and Sale Agreement together with The First Amendment to the Purchase and Sale Agreement (the “Purchase and Sale Agreement”) with Peachtree/Carnegie, LLC (the “Seller”), which is not affiliated with the Company, its advisor or affiliates, for the purchase of 100% of the Seller’s interest in an approximately 338,000 square feet leased data center and parking facilities (“180 Peachtree”), located in Atlanta, Georgia. 180 Peachtree is currently 100% leased to six tenants. The Assignor entered into the Purchase and Sale Agreement on October 12, 2011, which was amended on November 18, 2011. The terms of the Purchase and Sale Agreement provide for a purchase price of $94,750,000, plus closing costs. On November 18, 2011, DC-180 Peachtree, LLC, a subsidiary of CVOP, was formed to acquire and own 180 Peachtree.

The Purchase and Sale Agreement provides for (i) a non-refundable initial earnest money deposit of $2,000,000, a second earnest money deposit of $500,000 that was paid on November 21, 2011, and a third earnest money deposit of $3,500,000 due on December 2, 2011, for a total earnest money deposit of $6,000,000, which will be applied towards the purchase price on the completion of the acquisition of 180 Peachtree and which will be non-refundable unless the Seller defaults on its obligations under the Purchase and Sale Agreement; and (ii) an anticipated closing date of January 3, 2012; however, at the Company’s election, the closing date may be extended to a date no later than January 18, 2012 by providing an additional earnest money deposit of $1,000,000. The Purchase and Sale Agreement also contains closing conditions such that the Seller must provide subordination and non-disturbance agreements and estoppel letters for the tenants by the closing date or the Company can terminate the contract and receive a refund of the earnest money deposits. The Purchase and Sale Agreement also contains customary covenants, closing conditions, representations and warranties, and indemnification provisions.


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