PRC Structures $67 Million Data Center Value-Add Capital for Element Critical

Bethesda, MD, August 26, 2019

Phillips Realty Capital announced that a $67,000,000 transaction on behalf of Element Critical and its sponsors, Safanad and Industry Capital, has closed and funded. A team led by Bryan Leigh at EagleBank provided the funds to refinance and improve the 199,097 SF Tier III data center and office building located in Vienna, VA. Phillips Realty Capital’s William Lawson, Adam Bieber, and Harmon Handorf structured the debt financing.

Located at 7990 Quantum Drive, Element Critical’s Northern Virginia facility was built in 1978 and acquired by Safanad Industry Capital Internet Infrastructure, L.P. in 2016 from The Meridian Group. At completion, the Property will feature nearly 130,000 square feet of raised floor, including an 8 MW expansion of critical power in a N+1 redundancy configuration. This transaction will help fund the expansion plans that began shortly after the 2016 acquisition. The Property is predominately leased by publicly traded, investment grade tenants.

“On behalf of Element Critical and our sponsors, we were pleased with the market’s reaction to our transformation and enhancement of Quantum Drive,” said Ken Parent, CEO of Element Critical. “We were impressed by both Phillips Realty Capital’s financing team’s ability to tell our story and structure accretive capital and EagleBank’s well-tailored loan that will enable us to reach our goals with this asset.”

Lawson explained, “The capital markets for data center financing are rapidly evolving with more traditional and conventional lenders starting to invest in the space. Element Critical and its sponsors offer a powerful blend of capital expertise and operational excellence within the industry. EagleBank quickly demonstrated their deep knowledge and understanding of the market and provided our sponsor with a terrific structure for the next phase in this asset’s life-cycle.”

“Northern Virginia is the largest and most dynamic data center market in the world. Structuring debt in this critically important market for sponsors with expertise and passion is incredibly rewarding,” said Bryan Leigh, SVP Commercial Real Estate at EagleBank.  “We are very optimistic about the market and this asset in particular, and we’re committed to deploying more capital into this space.”

About Element Critical

Element Critical manages and operates data centers in Silicon Valley, Northern Virginia and now Chicago. The company’s Tier III hybrid IT ready facilities are carrier-neutral, network-rich, concurrently maintainable and available in a variety of deployment sizes and densities. Element Critical cares as much about the people they serve as the servers they house. Element Critical offers a data center experience that brings solutions engineering and customer service out of the shadows and into the spotlight. For more information, visit elementcritical.com.

About Safanad

Safanad is a global principal investment firm founded in 2009 with its main presence in New York and offices in London and Dubai. The firm creates sustainable value by pursuing opportunities underpinned by long-term social and economic insights and clear public sector policies and plans. As a principal investor, Safanad utilizes its capital, expertise and exceptional management partners to preserve and grow wealth for the firm and its global private and institutional clients. To date, Safanad has successfully executed ~$10 billion of transaction value in the U.S. and Europe across sectors including healthcare, education, student housing, suburban offices, automotive supply chain, and data centers. For more information, visit safanad.com.

About Industry Capital

Industry Capital is a private equity firm investing in real assets globally. The firm was founded in 2003 and based in San Francisco. Since inception, the firm has grown through investments in industrial real estate, real assets and a wealth management business. Industry Capital has a track record of success in operationally intensive real estate and has relationships with major pension funds, High-Net-Worth and private equity firms. Industry Capital is led by three partners with significant investment experience and a seasoned team of over 20 people.

About Eagle Bancorp, Inc & EagleBank

Eagle Bancorp, Inc. is the holding company for EagleBank, which commenced operations in 1998. EagleBank is headquartered in Bethesda, Maryland, and conducts full service commercial banking through 20 offices, located in Suburban, Maryland, Washington, D.C. and Northern Virginia. EagleBank focuses on building relationships with businesses, professionals and individuals in its marketplace. For more information, visit eaglebankcorp.com.

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