3. Real Estate Assets

12 Months Ended

Dec. 31, 2016

Real Estate [Abstract]

Real Estate Disclosure [Text Block]

Real Estate Assets

The following is a summary of our properties as of December 31, 2016 (dollars in thousands):

Property	Location	Land		Buildings and Improvements		Construction in Progress and Land Held for Development		Total Cost (2)
ACC2	Ashburn, VA	$	2,500	$	156,480			$	158,980
ACC3	Ashburn, VA	1,071		96,080				97,151
ACC4	Ashburn, VA	6,600		538,869				545,469
ACC5	Ashburn, VA	6,443		299,016				305,459
ACC6	Ashburn, VA	5,518		216,829				222,347
ACC7	Ashburn, VA	9,753		332,970				342,723
CH1	Elk Grove Village, IL	23,611		359,171				382,782
CH2	Elk Grove Village, IL	14,392		256,539				270,931
SC1 Phases I-II	Santa Clara, CA	20,202		433,099				453,301
VA3	Reston, VA	9,000		179,694				188,694
VA4	Bristow, VA	6,800		149,614				156,414
		105,890		3,018,361		—		3,124,251
Construction in progress and land held for development (1)						330,983		330,983
		$	105,890	$	3,018,361	$	330,983	$	3,455,234

(1) Properties located in Ashburn, VA (ACC8, ACC9, ACC10, and ACC11), Elk Grove Village, IL (CH3), Santa Clara, CA (SC1 Phase III, formerly referred to as SC2), Hillsboro, OR (OR1 and OR2) and Vaughan, ON (TOR1).

(2) As of December 31, 2016, the total cost of long-lived assets located in the United States totaled $3,408.9 million, and the total costs of long-lived assets located in Canada totaled $46.3 million (TOR1 in Vaughan, ON).

In February 2016, we acquired two parcels of undeveloped land in Ashburn, Virginia from entities controlled by our Chairman of the Board. One parcel is a 35.4 acre site that we purchased for $15.6 million, which we are using for the development of our ACC9 and ACC10 data center facilities. The other parcel is an 8.6 acre site that we purchased for $4.6 million. This parcel is being held for the future development of either a powered base shell or build-to-suit data center to be known as ACC11.

In June 2016, we completed the sale of our NJ1 data center for a gross purchase price of $125.0 million, and recorded a gain on sale of $22.8 million. We had previously recorded an impairment charge of $122.5 million during the fourth quarter of 2015.

In July 2016, we completed the acquisition of a 46.7 acre parcel of land in Hillsboro, Oregon for a purchase price of $11.2 million. This acquisition was treated as an asset purchase under GAAP. We are holding this parcel of land for future development in connection with our expansion plans.

In September 2016, we completed the acquisition of a shell building and associated land in Vaughan, Ontario for a purchase price of $54.3 million CAD ($41.6 million USD). This acquisition was treated as an asset purchase under GAAP. We are currently developing Phase I of TOR1 in this shell.

The following presents the major components of our properties and the useful lives over which they are depreciated:

Component	Component Life (years)
Land	N/A
Building improvements	40
Electrical infrastructure—power distribution units	20
Electrical infrastructure—uninterrupted power supply	25
Electrical infrastructure—switchgear/transformers	30
Fire protection	40
Security systems	20
Mechanical infrastructure—heating, ventilating and air conditioning	20
Mechanical infrastructure—chiller pumps/building automation	25
Mechanical infrastructure—chilled water storage and pipes	30