A data center occupied by CVS outside Phoenix, Arizona, has changed owners.
Institutional Property Advisors (IPA), a division of Marcus & Millichap, has announced the sale of a 354,890 square foot (32,970 sqm) single-tenant data center and office campus in Scottsdale, Maricopa County.
The CVS Data Center & Office Operations Campus was previously owned by real estate investment trust Net Lease Office Properties. In its own announcement, Net Lease said the property was sold for gross proceeds of $71.5 million.
Located on more than 38 acres at 9501 Shea Boulevard, the two-story office and data center site is fully leased to healthcare company CVS. Net Lease said the site generated $4.25 million in rent annually.
“The property operates as a mission-critical data and operations center for CVS,” said Peter Bauman, IPA senior managing director. Specifications of the data center weren't shared.
The office building was constructed in 1977 and renovated in 2023, with CVS as a tenant since 1988. The site was put up for sale in April, after CVS reportedly recently executed a 15-year lease extension. It's unclear when Net Lease acquired the site.
“We successfully generated 25 offers from a diverse group of institutions, ultra-high-net-worth individuals, 1031 exchange buyers, and developers in a very competitive process,” added Tivon Moffitt, IPA senior managing director.
Bauman and Moffitt represented the seller, and procured the buyer.
The buyer wasn’t named by Net Lease or IPA, but BizJournal reports via Vizzda data that the buyer was Robert C. Samuel, a trustee of the Robert C. Samuel Revocable Trust.
Net Lease owns a portfolio of high-quality office properties primarily leased to corporate tenants on a single-tenant net lease basis across the US and Europe.
The company said net proceeds after closing costs were used to repay approximately $55 million on J.P. Morgan's senior secured mortgage and approximately $8 million on its mezzanine loan, in accordance with the terms of those facilities.
Following the sale, Net Lease owned 46 office properties, comprising 43 properties in the US and three properties in Europe.
