Key Highlights

• A 72-megawatt Virginia data center was acquired for approximately $860.6 million in a single-asset transaction.

• The facility is 100% leased to a hyperscaler, securing long-term revenue stability.

• Acquisition funded through cash and a $559.0 million CMBS loan with a 5.465% weighted average rate.

• Loan matures in 2040, featuring prepayment penalties before January 9, 2031.

Deal Completion Announced

A 72-megawatt data center in Gainesville, Virginia, changed hands in a transaction valued at approximately $860.6 million. The acquisition closed on June 23, 2026, marking a significant move in the digital infrastructure sector. The property is fully occupied under a lease agreement with a hyperscaler, ensuring immediate cash flow for the new owner.

Property and Tenant Profile

The data center, located in Gainesville, is a 72-megawatt facility currently 100% leased. The tenant, a hyperscaler, provides the asset with a stable, long-term revenue stream. Such leases are highly sought after in the data center market due to their creditworthiness and duration.

Funding Structure Revealed

The acquisition was financed through a combination of available cash and debt. A new $559.0 million mortgage loan was secured to support the purchase. The loan was structured as a commercial mortgage-backed securities (CMBS) facility, reflecting strong investor appetite for digital infrastructure assets.

Loan Terms and Conditions

The CMBS loan carries a weighted average interest rate of approximately 5.465% per annum. It has a term of five years, with flexibility for refinancing or asset monetization. Prepayment is permitted but subject to yield maintenance penalties if repaid before January 9, 2031.

Securitization and Investor Participation

Proceeds from the CMBS facility were used to repay existing debt on the property and cover acquisition-related costs. Affiliates of the acquiring entity purchased portions of the CMBS bonds, aligning interests between the borrower and lenders. The structure is typical for large-scale real estate transactions in the data center space.

Regulatory Filing Details

The transaction was disclosed in a filing with the U.S. Securities and Exchange Commission, referencing Exhibit 10.1 for the purchase agreement and Exhibit 10.2 for the CMBS loan terms. The filing adheres to the Securities Exchange Act of 1934, ensuring transparency for investors and stakeholders.

Market Implications

The deal underscores the growing demand for hyperscale-ready data centers in key U.S. Markets. Virginia remains a critical hub for digital infrastructure, driven by proximity to major cloud providers and robust power infrastructure. The transaction’s size and financing terms reflect confidence in the sector’s long-term growth.

 

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.