MoFo Advises Realty Income Corporation in New Joint Venture with Digital Realty Trust to Develop Two Data Centers

Morrison Foerster advised Realty Income Corporation in connection with the creation of a joint venture with Digital Realty Trust to support the development of two build-to-suit data centers in Northern Virginia. Realty Income invested approximately $200 million to acquire an 80% equity interest in the venture, while Digital Realty maintains a 20% interest. Each partner will fund its pro rata share of the remaining $150 million estimated development cost for the first phase of the project, which is slated for completion in mid-2024. 

The two build-to-suit data centers started construction in the fourth quarter of 2022 and are slated to deliver 16 megawatts (MW) of initial data center capacity, which is expandable up to 48MW at the tenant's option. Realty Income, The Monthly Dividend Company®, is structured as a REIT and invests in people and places to deliver dependable monthly dividends that increase over time. Digital Realty brings companies and data together by delivering the full spectrum of data center, co-location and interconnection solutions.

The MoFo team advising Realty Income Corporation was led by Washington D.C. corporate partner David Slotkin, New York real estate partner Alfred Williams and Washington, D.C. corporate associate Maggie Bradley.