Acquisition of Real Estate

6 Months Ended

Jun. 30, 2014

Business Combinations [Abstract]

Acquisition of Real Estate

3. Acquisition of Real Estate

On June 30, 2014 the Company completed the acquisition of a data center facility in New Jersey, from McGraw Hill Financial, Inc., for an aggregate cost of approximately $73.3 million. This facility is located on approximately 194 acres and consists of approximately 560,000 gross square feet, including approximately 58,000 square feet of raised floor, and 12 megawatts (“MW”) of gross power. This acquisition was funded with a draw on the unsecured revolving credit facility. Concurrently with acquiring this data center the Company entered into a 10 year lease for the facility’s 58,000 square feet of raised floor with Atos, an international information technology services company headquartered in Bezos, France. The lease includes a 15 year renewal at the option of Atos.

The Company accounted for this acquisition in accordance with ASC 805, Business Combinations as a business combination. The preliminary purchase price allocation was based on an assessment of the fair value of the assets acquired, and excludes acquisition-related costs which in accordance with ASC 805 were expensed as incurred.

The following table summarizes the consideration for the New Jersey facility and the preliminary allocation of the fair value of assets acquired as of June 30, 2014:

	New Jersey facility as of June 30, 2014		Weighted average useful life
Buildings		35,574	40
Land		17,976	N/A
Acquired Intangibles		16,114	10
Deferred Costs		3,335	10
Other		301	10
Total purchase price	$	73,300

The purchase price allocation remains provisional pending completion of further valuation analysis. Any further revisions will be recorded as adjustments to the final purchase price allocation.