CyrusOne has secured its first Commercial Mortgage-Backed Security (CMBS) financing.

The KKR and GIP-owned company this week announced it secured a $687.1 million Single Asset Single Borrower (SASB) CMBS loan for CyrusOne’s DFW1 data center.

Eric Schwartz, CyrusOne CEO, said: “Today’s announcement is another example of our ability to access large amounts of capital and tap different markets through institutional demand. This transaction comes on the heels of our $1.175 billion ABS issuance and CyrusOne securing $9.7 billion in new debt capital to fund data center growth.”

Reports CyrusOne was dipping its toe into CMBS financing surfaced last year.

Located at 1649 West Frankford Road in Carrollton, DFW1 offers 90MW across 670,000 sq ft (62,245 sqm) of technical space and seven data halls. The company upgraded the site to water-free chillers in 2020.

It houses the infrastructure and 911-dispatch center for Carrollton, Coppell, Farmers Branch, and Addison, Texas. CyrusOne said the data center serves more than 100 customers and is the first co-location/enterprise data center single asset single borrower securitized financing since the financial crisis in 2008.

This transaction brings CyrusOne’s total capital raised this year to nearly $12bn. The company secured a $7.9bn Warehouse Credit Facility earlier this month, and a $1.8bn Revolving Credit Facility in May,

Fran Federman, EVP & chief investment officer at CyrusOne, added: “This is CyrusOne’s entrance to the CMBS market, diversifying our debt investor base with strong support from institutional investors. We are grateful to our fixed-income investors for their continued support. Through this transaction, we have entered into a new market that will allow us to expand the scope of our permanent financing solutions.”

Morgan Stanley served as Lead Manager and Bookrunner; Wells Fargo Securities, LLC, Goldman Sachs & Co. LLC, and KKR Capital Markets served as Co-Lead Managers and Joint Bookrunners. Global Infrastructure Partners also worked closely with the company in connection with this transaction.

CyrusOne has dozens of data centers across 13 markets in the US. In 2024 alone the company has filed plans for new campuses in Chicago, Illinois, and New Albany, Ohio, as well as breaking ground on new facilities in San Antonio, Texas.

QTS has previously secured CMBS financing against four data centers, while Sabey has secured CMBS financing for its 375 Pearl facility in New York City.