CyrusOne Inc. (Nasdaq: CONE), a real estate investment trust (REIT) targeting data centers, has agreed to purchase two data properties from Sentinel Data Centers LLC in a deal valued at $490 million. The transaction is expected to close in the first quarter of 2017.

"We are very excited about this transaction, which establishes a presence for us in the Southeast, adds a high quality portfolio of large enterprise customers, and features an attractive long-term lease profile," states CyrusOne CEO Gary Wojtaszek.

Sentinel, headquartered in New York, is an owner, designer and builder of data center real estate across the U.S. The current deal with Sentinel includes one facility based in Raleigh-Durham, North Carolina and the other 35 miles outside of New York in Somerset, New Jersey. The two data properties have more than 160,000 colocation square feet combined and nearly 21 megawatts of power capacity, as of Dec. 31, 2016.

CyrusOne is a high-growth REIT that specializes in data center properties that protect the continued operation of information technology infrastructure. The buyer currently has 32 data centers with plans for another facility in Washington coming soon. The deal for Sentinel’s properties benefits CyrusOne with long-term leases with a quality customer base, exposure to the healthcare and financial services sectors, and additional development opportunity. CyrusOne services more than 950 customers to date.

Deals for data centers have become increasingly attractive for buyers of all kinds in the middle market. Recent acquisitions include: GI Partners's completed purchase of Komo Plaza, a 294,000 square foot data facility and office space, from real estate investment firm Hines Interests LP; Verizon Communications Inc. (NYSE: VZ) selling its data centers to Equinix Inc. (Nasdaq: EQIX) to focus on mobile video advertising; Equinix continuing its buying spree by adding Bit-isle Inc.; Fusion Telecommunications International Inc. (Nasdaq: FSNN) buying call center software company Technology for Business Corp.; and TierPoint LLC agreeing to buy Cosentry.

DLA Piper LLP is serving as primary legal counsel to CyrusOne. DH Capital is acting as as its exclusive financial adviser to Sentinel and Skadden Arps Slate Meagher & Flom LLP is serving as legal counsel. 

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