CoreSite Realty Corporation (COR Quick QuoteCOR - Free Report) is set to expand its Northern Virginia Campus. In fact, the company revealed that it is under binding agreement to enhance its Reston campus through the Sunrise Technology Park (STP) buyout.

Notably, the STP site is a 21.75-acre light-industrial/flex office park. It has four buildings that aggregate 315,000 square feet and is 0.3 miles from CoreSite’s current VA1 and VA2 buildings. However, CoreSite expects building more than 660,000 square feet of new data center capacity across several phases on the parcel.

This would expand the data center capacity in the Reston Campus, which presently has two facilities aggregating over 390,000 square feet of data center capacity, to more than 1 million square feet.

The company anticipates closing the acquisition in the fourth quarter of this year and expects to invest $60 million plus transaction costs to purchase STP. This would be followed by another $90 million for completion of Phase 1 of the master-planned development.

Notably, with growth in cloud computing, Internet of Things and big data, and an increasing number of companies opting for third-party IT infrastructure; data center REITs are experiencing a boom market. This is providing opportunities to the data center REITs like CoreSite, Equinix, Inc. (EQIX Quick QuoteEQIX - Free Report) , Digital Realty Trust, Inc. (DLR Quick QuoteDLR - Free Report) and CyrusOne, Inc. to thrive.

The current expansion drive would help CoreSite to capitalize on its solid strength at the Reston Campus backed by over 175 customers, together with 35 networks and over 50 cloud and IT service providers.

CORESITE REALTY Price

CORESITE REALTY Price | CORESITE REALTY Quote

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>