PRC Secures $62.24 Million Capital Stack for Legacy’s Acquisition of a Data Center Outside of Atlanta

Bethesda, MD, August 6, 2018

Phillips Realty Capital (PRC) announced that two transactions totaling $62,240,000 have closed and funded on behalf of Legacy Investing, LLC for the acquisition and joint venture operation of a fully-leased Tier IV data center located in Alpharetta, GA. Phillips Realty Capital Managing Director Adam Bieber and Director William Lawson structured the debt and equity for the partnership.

Guggenheim Partners provided a balance sheet loan on behalf of one of their separate accounts in the amount of $41,900,000 of permanent financing for the acquisition.

“Guggenheim demonstrated an early interest in the opportunity when first presented. We were impressed by their creativity and ability to properly tailor the loan to our clients’ strategy,” said Lawson.

A private equity investment firm provided $20,340,000 to form a joint venture with Legacy to acquire and operate the data center.

The 165,000 SF mission-critical data center sits on a 14.46-acre site located at 1650 Union Hill and is comprised on 50,440 SF raised data space and 58,814 SF office space, with the remaining space occupied by data center infrastructure. The data center offers 4 megawatts (“MW”) of critical power in a 2N+ 1 configuration with the ability to expand its power density. The facility was a purpose-built data center in 1999 for its primary occupant, an institutional credit tenant.

About Phillips Realty Capital

Phillips Realty Capital is a leader in Washington, D.C. commercial real estate finance, structuring approximately $1.2 billion in debt and equity transactions a year and servicing a $2.5 billion loan portfolio on behalf of 25 institutional investors. Established in 1933 and still privately owned, Phillips has a proven track record of collaborating with premier property owners, lenders, and investors to structure the most competitive transactions available in the market. With offices in Bethesda, Richmond, Charlottesville, and Alexandria, dedicated teams of experts deliver reliable financial analysis, precise valuations, and deep knowledge of capital markets to structure capital stacks that leverage debt and equity financing to maximize the value of client assets. Read more at www.phillipsrealtycapital.com.

About Legacy Investing, LLC

Legacy Investing focuses on mission-critical real estate investments that provide long-term, stable cash yields. Legacy is led by a seasoned team of corporate technology executives who shifted into real estate investing, leveraging personal and industry contacts and expertise to source and underwrite predominantly off-market deals. Legacy’s principals have leveraged this platform over the past decade to complete more than $1.5 billion in transactions across industrial assets, data centers, offices and multi-family properties. Read more about Legacy Investing at https://www.legacyinvesting.com.

About Guggenheim Partners

Guggenheim Partners is a global investment and advisory firm with more than $305 billion in assets under management. Across the company’s three primary businesses of investment management, investment banking, and insurance services, Guggenheim has a track record of delivering results through innovative solutions. With over 2,400 professionals based in more than 25 offices around the world, the company’s commitment is to advance the strategic interests of clients and to deliver long-term results with excellence and integrity. Learn more about Guggenheim’s expertise and values by visiting GuggenheimPartners.com and following them on Twitter at twitter.com/guggenheimptnrs.