DuPont Fabros Technology, Inc. (DFT - Free Report) , a real estate investment trust (REIT), recently stated that its Chicago-based property, CH1 data center, is now 100% occupied. The CH1 data center now boasts nine tenants with an average lease term of 9.9 years.
Positioned in the western suburbs of Chicago, CH1 is one of the most urbane and proficient data centers in the U.S. Midwest. CH1 data center is developed in two phases and spans 485,000 gross square feet with 231,000 square feet of increased space and 36.4 megawatts (MW) of critical load. DuPont Fabros inked two lease deals at the data center before it was fully occupied.
The first deal is in Phase I for 0.43 MW with an existing tenant in the company's other facility and will start in the first quarter of 2013. The second deal is in Phase II for 2.6 MW with another existing tenant and will begin in three phases. The first phase of the deal for 1.3 MW will be initiated in the first quarter of 2013 and the remainder 1.3 MW deal will be taken up in equal parts in third and fourth quarters of 2013.
Concurrently, the company executed a new lease agreement for 5.69 MW at its other data center named SC1 with an existing tenant. The existing tenant recently renewed a lease at ACC3 in Ashburn, Virginia, and is also one of the customers leasing in Chicago. The SC1 data center, situated in Santa Clara, is one of the largest data centers in the Greater San Francisco Bay area. The deal inched up the occupied space to 75% from 44%. The new lease will be rolled out in three phases of 2.28 MW each in the first and second quarter and 1.13 MW in the fourth quarter of 2013.
DuPont Fabros strategizes on long term tenant retention and providing top class service. Yahoo! Inc. and Microsoft Corporation (MSFT - Free Report) are among the company’s loyal tenants. Last month, DuPont Fabros declared that its Ashburn, Virginia-based ACC6 data center is 100% leased, with the signing of a lease deal with an existing tenant to fill up the remaining space.
Washington, DC-based DuPont Fabros is a leading owner, developer, operator and manager of wholesale data centers. As of September 30, 2012, the company had 10 data centers spanning a total gross area of 2.4 million square feet across the U.S.
We currently have long tern Neutral recommendation on DuPont Fabros. Also, it carries a short-term Zacks #3 Rank (Hold).