Doubling Down on Data in Elk Grove Village

One of the country’s largest data center operators is selling a majority stake in two Elk Grove Village, IL properties, a transaction financed with $450 million in debt, marking one of the largest local tech real estate deals in years, reported Crain’s Chicago Business.

Digital Realty Trust, an Austin-based REIT, is selling the majority interest in two data centers: a 485,000-square-foot building at 2200 Busse Road and an adjacent 305,000-square-foot property at 1400 E. Devon Avenue. Elk Grove Village has emerged as a data center haven, and this massive deal highlights the continued strength of the data center sector even amid a broader slowdown in the commercial real estate market.

Digital Realty and San Francisco-based GI Partners are financing the deal with a 10-year, $450-million fixed-rate loan from three banks: Barclays, Citigroup and Morgan Stanley. Eastdil Secured is brokering the joint-venture transaction between Digital Realty and GI and arranging the debt financing.

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