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Published:   February 8, 2013
Volume:   XIX    Number:   5

DIGITAL REALTY DROPS $24 MILLION FOR CHANDLER PROJECT SOLD BY AMKOR TECHNOLOGY

Chandler - Digital South Price 2 LLC, a company formed by Digital Realty Trust Inc. in San Francisco, Calif. (NYSE:DLR, Michael Foust, CEO), paid $24 million ($99.59 per foot) to purchase roughly 241,000 sq. ft. of office-flex space located within the Price Road corridor in Chandler. The seller in the cash transaction was Amkor Technology Inc. in Chandler (NASDAQ:AMKR, James Kim, executive chairman).The buyer was represented through Mark Bauer and Carter Robinson of Jones Lang LaSalle in Phoenix. The seller was represented through Pete Wentis and Kevin Cosca of CBRE in Phoenix. The three-building project is comprised of a 125,000-square-foot flex structure at 3200 W. Germann Road and a three-story, 75,000-square-foot office and a two-story, 41,000-square-foot office at 1900 S. Price Road. The structures were built from 1996 to 1998. Sources say Digital Realty Trust will convert the 125,000-square-foot building into a data center. The other two structures, which will be occupied by Amkor for the short term, will be used as support office. The larger building can be expanded. The three structures are on a 18-acre parcel. The Chandler project is suitable for Digital Realty because of the large amount of power and fiber optics that serve the site. Digital Realty Trust, a leading provider of data center solutions, owns multiple data centers in the Valley. Just across the street from the property acquired from Amkor, Digital Realty Trust owns a 500,000-square-foot data center at 2121 S. Price Road. A company formed by Digital Realty Trust acquired that facility in July 2010 as part of a six-property, $289 million portfolio. In August 2006, BREW reported Digital Realty Trust paying just over $49.312 million to buy a 347,000-square-foot data center building at 120 E. Van Buren Street in Phoenix that was the former headquarters of The Arizona Republic. Digital Realty Trust also owns almost 200,000 sq. ft. of space in two projects located in the Arizona State University Research Park in Tempe. Mark Walker, dir. of real estate acquisitions at Digital Realty Trust, is at (415) 738-6500. Mike Ellis of Amkor is at (480) 821-5000. Reach Bauer and Robinson at (602) 282-6300. Wentis and Cosca are at (602) 735-5555.




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