Dealmaker: Phillips Realty Capital Secures $85M for Data Center, Retail

Michael Tucker mtucker@mba.org

August 09, 2018


Phillips Realty Capital, Bethesda, Md., closed two transactions totaling $62.2 million for Legacy Investing LLC's acquisition of an Atlanta-area Tier IV data center.

Phillips Managing Director Adam Bieber and Director William Lawson structured both debt and equity. Guggenheim Partners, New York, provided a $41.9 million balance sheet loan and a private equity firm provided $20.3 million to form a joint venture with Legacy Investing to acquire and operate the Alpharetta, Ga. data center.

"Guggenheim demonstrated an early interest in the opportunity when first presented," Lawson said.

The 165,000-square-foot data center occupies a 14.4-acre site at 1650 Union Hill Road. The fully leased asset includes 50,500 square feet of raised data space and 58,800 square feet of office space. Data center infrastructure occupies the remaining square footage. The data center offers 4 megawatts of critical power with the ability to expand its power density. It was purpose built in 1999 for its institutional credit primary occupant.

In June Phillips Realty Capital Principal Mark Remington arranged $22.5 million from United Bank to refinance WesTech Corner, a 41,300-square-foot community shopping center in Silver Spring, Md.

Rappaport, McLean, Va., acquired the property in October 2014 and has invested $500,000 in improvements. The center is fully leased to destination and convenience retailers including Five Guys, Chick-Fil-A, Qdoba Mexican Grill, TGI Fridays, Panera Bread, IHOP and Capital One Bank.

More than 300,000 people with average household incomes exceeding $102,000 live within a five-mile radius.

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