Carter Validus Mission Critical REIT II, Inc. Acquires Healthcare and Data Center Properties Totaling Over $100 Million

January 23, 2017

Carter Validus Mission Critical REIT II, Inc. Acquires Healthcare and Data Center Properties Totaling Over $100 Million

January 23, 2017 06:00 AM | Business Wire

Figuring the cost of healthcare

TAMPA, Fla.–(BUSINESS WIRE)–Carter Validus Mission Critical REIT II, Inc. (“CVMC REIT II”) completed the following data center and healthcare property acquisitions totaling more than $100 million in aggregate purchase price during the month of December 2016:


Chicago Data Center II

Acquired by CVMC REIT II for a purchase price of $33.1 million on December 28, 2016, the Chicago Data Center II is a four-story, 115,352 rentable square foot building on approximately four acres located in Suburban Chicago. Constructed in 1987, the building has 56,356 square feet of raised floor space and concrete spread footings constructed of pre-cast concrete with 16-foot ceilings. Cooling is provided by two 340-ton and four 400-ton rooftop liquid chillers plus 55 Computer Room Air Conditioning (“CRAC”) units with 20-tons of capacity. Power to the facility is provided via four 2,500 kVA transformers with back-up power available via three Caterpillar generators and two UPS (2.7MW and 1.8MW). Total power to the site is 4.5MW with 1.7MW of critical UPS capacity. Improvements made to the property within the last year include over $5 million on electrical switch gear, an automatic transfer switch (“ATS”), LED lighting, a Very Early Smoke Detection Apparatus (“VESDA”), an upgraded sprinkler pump system and various “beautification” projects. The facility is 100% leased to Ensono, LP (“Ensono”). Ensono is a hybrid IT services provider offering IT infrastructure and data solutions which support mission-critical applications and workloads for companies around the world.

Data Center located in South Carolina

CVMC REIT II acquired a colocation data center located in South Carolina on December 29, 2016, for a purchase price of approximately $19.2 million.


Grand Rapids Healthcare Facility

Located on 2.14 acres in Grand Rapids, Michigan, the Grand Rapids Healthcare Facility is a four-story medical office building (“MOB”) that was acquired by CVMC REIT II on December 7, 2016, for a purchase price of $43.5 million. Constructed in 2008, the facility houses operations for a women’s health medical center and totals approximately 106,800 square feet of rentable space comprising approximately 100,000 square feet of medical office and surgical suites, including an outpatient rehab facility, and approximately 6,000 square feet of administrative and storage space. The structure has an attached 419-space five-story parking garage and is constructed of steel frame with concrete block and brick exterior. The facility is 92.62% leased and its tenants include:

  • Grand Rapids Women’s Health, P.C.
  • Metropolitan Hospital
  • Orthopaedic Associates of Grand Rapids, P.C.
  • Spectrum Health Hospitals


Corpus Christi Surgery Center

The Corpus Christi Surgery Center was acquired by CVMC REIT II on December 22, 2016, for a purchase price of approximately $6.4 million. The facility is a 25,102 square foot, three-story, ambulatory surgery center constructed of steel beam frame and concrete slab flooring with concrete block exterior located in Corpus Christi, Texas. The first story provides covered on-site parking. The second story houses a surgical facility equipped with four operating rooms, one treatment room, six pre-op suites, eight post-op suites, and four intermediate care units. The third story houses a gastroenterology clinic. The property includes two remote parcels designated for offsite parking of approximately 134 cars. The facility is 100% leased and its tenants include:

  • Shoreline Surgery Center, LLP
  • Abdominal Specialists of South Texas, LLP

“These acquisitions are indicative of our commitment to investing in well-located, high-quality commercial real estate in the growing industries of data centers and healthcare. We believe the various critical nature services the tenants of these facilities provide deem them a great fit for our diversified mission critical portfolio,” said Michael Seton, President of CVMC REIT II.

“We are pleased with the volume and quality of these transactions as well as all of our acquisitions in 2016. Given our experience in building the CVMC REIT II portfolio, we believe we are uniquely positioned to build on our existing relationships and complete more accretive deals in 2017 to add value for shareholders,” said John E. Carter, Chief Executive Officer of CVMC REIT II.

About Carter Validus Mission Critical REIT II, Inc.:

Carter Validus Mission Critical REIT II, Inc. is a public, non-traded company headquartered in Tampa, Florida that has elected to be taxed, and believes it qualifies, as a real estate investment trust. Carter Validus Mission Critical REIT II, Inc. intends to acquire mission critical real estate assets located throughout the United States and abroad. Mission critical real estate assets are purpose-built facilities designed to support the most essential operations of tenants. Carter Validus Mission Critical REIT II, Inc. intends to focus its acquisitions on mission critical assets in the data center and healthcare sectors. See www.cvmissioncriticalreitii.com for more information.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. Although CVMC REIT II believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. CVMC REIT II undertakes no obligation to update any forward-looking statement contained herein to conform the statement to actual results or changes in CVMC REIT II’s expectations.


Carter Validus
Stacy Sheedy, 813-316-4292
Marketing Manager

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Gil Armour, CFP
February 3, 2016

I have been using Blue Vault Partners for the past five years.  I have found them to be a valuable, unbiased resource when it comes to evaluating and comparing non-traded REITs.  The reports help me analyze which sponsors are doing a responsible job of managing their offerings.  This allows me to limit my REIT recommendations to only the most competitive products, and then track those REITs throughout their life cycle.