QTS Realty Trust arranged a $1 billion asset-backed securities (ABS) deal against its data-center portfolio to refinance existing infrastructure assets.
Blackstone's QTS is pursuing a $1 billion securitization through ABS notes, with closing expected during the week of October 5, according to a Fitch Ratings presale report. The transaction will be backed by seven hyperscale data centers totaling 2.2 million square feet and 253.5 megawatts across four key markets: Phoenix, Richmond, Northern Virginia, and Dallas-Fort Worth.
The financing package consists of up to $719.8 million in fixed-rate loans and up to $305.3 million in floating-rate notes. All 10 loans will be interest-only before their scheduled repayment dates, with a 30-year legal final maturity. Proceeds will repay existing debt, fund reserves, and support general corporate needs. KeyBank National Association will serve as servicer, Wilmington Trust as indenture trustee, and Deutsche Bank Securities as sole structuring advisor and bookrunning manager.
This deal follows QTS' $870 million ABS issuance in July under the same master trust, which was backed by five data centers. The current transaction adds two properties to the collateral pool.
The Phoenix properties—PHX2DC2, PHX2DC3, and PHX2DC5—are located at 1250, 1400, and 1500 N. 40th Street. Delivered in 2024, these three facilities are part of QTS' second data center campus in the metro, an 80-acre development near Phoenix Sky Harbor International Airport with five buildings slated to reach 210 megawatts total capacity.
In Richmond, QTS holds RIC2DC3 and RIC2DC5 at 6050 and 6060 Technology Boulevard in Sandston, Virginia, positioned 17 miles from downtown. These facilities anchor an 85-acre campus still under development that will eventually deliver 180 megawatts.
The Northern Virginia asset, ASH2DC2, sits at 44655 Quality Tech Lane in Sterling, Virginia, and came online in 2023 as part of a two-building QTS campus in the Ashburn area totaling 75 megawatts.
The Dallas-Fort Worth property, DFW1DC4, is located at 6311 Longhorn Drive in Irving, Texas, and anchors a 56-acre campus comprising six facilities with 165 megawatts of capacity.
Four investment-grade tenants and three small network carriers fully occupy the portfolio, with a weighted average remaining lease term of 12.9 years.
Beyond this transaction, QTS continues expanding across South Carolina, Utah, Georgia, and Iowa. Recent milestones include the topping out of the first facility in its $8 billion Rock Hill, South Carolina project—the company's inaugural South Carolina undertaking. Additionally, QTS secured a $1.3 billion CMBS loan in June to refinance a 66-megawatt data center in New Albany, Ohio, which is fully leased to a single tenant through 2045.