Orlando Data Center

The Project

The Orlando Data Center is a 129,257 square foot single story office/industrial building situated on 35 acres. The property, originally built in 1983, has been through several upgrades and was maintained by AT&T through 1983 as a data center. 84,569 square feet of the available space is raised floor area suitable for use as a data center. The remaining space is configured for office, shipping, and other uses. In 2003, the data center was closed, eliminating the employment opportunities that it had provided, and AT&T subsequently sold the building. The property has been vacant since that time.

Project Financing

UDF’s $7,026,000 bridge loan, along with an additional $15 million in financing provided by GMAC Commercial Holdings, will allow the new owners to rehab the data center and find a new tenant for the structure. Some improvements will be made to the physical structure as well as upgrades to data center components to bring the center back to a level at which it can be leased to new tenants. The UDF’s interest-only loan is for an 18-month term, at which time the property should be leased to a new tenant. This property would have had difficulty in obtaining financing from other sources due to the specialized nature of the property and to the fact that it is currently vacant, and has been for some time.

Community Impact

The Orlando Data Center is located in an area with an 8.7% unemployment rate, more than 1.5 times the national average of 5.2% at the time of UDF’s investment. Once op-erational, this property will provide high tech employment opportunities for residents of the surrounding neighborhoods as well as data and internet services. The data center will provide 1311 new full time jobs and 337 temporary construction jobs. Additionally, renovation and leasing of this property will prevent further deterioration of a property that has been vacant for several years. UDF has provided the following better rates and terms to this project: an interest rate 26% below market, debt with equity features due to the lack of income at the property, more flexible borrower credit standards, and a lower than standard debt service coverage ratio. The project was able to obtain NMTC financing despite the lack of income and the vacancy of the property due to the immediate need to create jobs in this area.