Naviste is an international hosting company that recently got a new landlord in Boston. If your hosting is currently handled by Naviste or you were thinking about it, you might wonder what this means for your future. In the following article, we’ll discuss the specifics of the transaction.
The Sale Itself
As the title says, the data center, which is located in Andover, Massachusetts, sold for $37 million. The building is 135,000-square feet. It’s currently leased by Naviste, which is owned by Charter Communications, and another tenant.
Sitting on 22.77 acres, the property was built in 2000. It has poured-in concrete footings that are place-reinforced and foundation walls that are fortified by metal-insulated panels and an additional concrete slab.
On top of that, the building benefits from an onsite security staff that is there 24/7. Dual-authentication access and bio-scan palm readers are used for guests who are monitored through video surveillance and for colocation in Boston MA.
In other words, security is not a problem for this building.
While Carter Validus Mission Critical REIT II did not publish the name of this company, we know that it’s another IT company that offers weather-forecasting solutions to clientele from all over the world.
Both tenant companies will benefit from onsite diverse fiber-entry points with numerous carriers. This provides comprehensive network redundancy. 2,500 kVA transformers mounted to pads provide power with backup provided by 4 Caterpillar generators, 275 kVA Powerware UPS and 5 750 kVA Enersys batteries.
Obviously, the location’s proximity to Boston is a big selling point. Aside from the city’s huge concentration of IT companies, Beantown also has a cooler temperature that makes it much easier to house large amounts of tech.
Carter Validus Mission Critical REIT II
This is far from the first property acquisition for Carter Validus Mission Critical REIT II, a real estate asset company that focuses on purpose-built facilities made to support mandatory, mission-critical operations. As such, the majority of the properties they own are data centers and healthcare properties. Its name is a reference to Carter Validus Mission Critical REIT I, a sister company.
Carter Validus Mission Critical REIT II has not been slow in acquiring properties, either. The company got started in 2014 but already owns nearly 50 properties.
Its many acquisitions include a data center in Somerset, New Jersey that is currently being leased by Datapipe, a Los Angeles data center that is being used by AT&T and a Franklin, Tennessee data center that is occupied by Peak 10.
In total, Carter Validus Mission Critical REIT II has completed real estate transactions that total more than $38 billion. Their portfolio of leased mission-critical properties is worth well over $2.3 billion.
It’s these types of deals that have made the company one of the largest buyers of data centers in the country. Currently, Carter Validus Mission Critical REIT II represents almost 20% of acquisitions in this market.
The parent company that owns Carter Validus Mission Critical REIT II has a much more extensive history. Carter Calidus was started back in 1958. It, too, is a real estate investment firm that works in the same sector.
A Breakdown of Naviste
Like we mentioned before, Naviste is owned by Charter Communications through a subsidiary named Spectrum Enterprises. The parent company is a leading provider of cloud-enabled, enterprise-class hosting with customers from all over the world. It also provides a number of other managed services and applications.
No one can be sure what this means for the future of Naviste, but there doesn’t seem anything to worry about. The company isn’t going to falter because of a new landlord. Even if that was a legitimate concern, Carter Validus Mission Critical REIT II knows what they’re doing and will most likely prove to be a huge asset for Naviste.