Acquisitions of Real Estate (QualityTech, LP [Member])

9 Months Ended

Sep. 30, 2013

QualityTech, LP [Member]

Acquisitions of Real Estate

3. Acquisitions of Real Estate

In February 2013, the Company completed its acquisition of a site in Dallas, Texas. The Company paid cash of $10.25 million for the Dallas facility. In connection with the transaction, the Company obtained $10.25 million of seller-financed debt that was repaid in June 2013 as outlined in Note 5. Additionally, the Company incurred transaction costs of $0.6 million, which were capitalized, providing an aggregate cost of $21.2 million. Upon completion of the redevelopment, the former 700,000 square foot semiconductor plant will be converted into a data center facility on the existing campus. In accordance with ASC 805, the Company accounted for this acquisition as an asset purchase.

In December 2012, the Company purchased a data center facility located in Sacramento, California for which the Company paid approximately $63.3 million. The preliminary purchase price allocation was based on an assessment of the fair value of the assets acquired. The preliminary purchase price allocation recorded for the year ended December 31, 2012, was adjusted in 2013 when the valuation analysis was finalized. The following table summarizes the consideration for the Sacramento facility and the adjusted preliminary allocation of the fair value of assets acquired as of September 30, 2013 (in thousands):

	Adjusted Sacramento facility as of September 30, 2013		Original Sacramento facility as of December 31, 2012		Adjustment			Weighted average useful life
Working capital	$	—	$	—	$	—
Buildings		52,439		52,753		(314	)		40
Land		1,481		1,485		(4	)
Tenant relationship		5,366		5,029		337			4
In place leases		3,964		3,202		762			2
Above (below) market leases		—		781		(781	)		1
Total purchase price	$	63,250	$	63,250	$	—