1. Organization

CoreSite Realty Corporation (the “Company,” “we,” or “our”) was organized in the state of Maryland on February 17, 2010 and is a fully integrated, self-administered, and self-managed real estate investment trust (“REIT”). Through our controlling interest in CoreSite, L.P. (our “Operating Partnership”), we are engaged in the business of owning, acquiring, constructing and managing technology-related real estate.

On September 28, 2010 we completed our initial public offering (the “IPO”) which resulted in the sale of 19,435,000 shares of our common stock, including 2,535,000 shares as a result of the underwriters exercising their over-allotment option, at a price per share of $16.00, generating gross proceeds to the Company of $311.0 million. The proceeds to the Company, net of underwriters’ discounts, commissions and other offering costs were $285.6 million.

Upon completion of the IPO, our Operating Partnership entered into various formation transactions and acquired 100% of the ownership interests in the entities that owned our Predecessor, as defined below, from certain real estate funds (the “Funds”) affiliated with The Carlyle Group. Our Predecessor includes the limited liability companies which were all wholly owned, directly or indirectly, by CRP Fund V Holdings, LLC. We have determined that CRP Fund V Holdings, LLC is the acquirer for accounting purposes and, therefore, interests contributed by CRP Fund V Holdings, LLC in the formation transactions (the Predecessor entities and properties) were recorded at historical cost.

Additionally, our Operating Partnership acquired 100% of the ownership interests in the entities that owned the CoreSite Acquired Properties, as defined below, from the Funds and their affiliates. The contribution or acquisition of interests in the CoreSite Acquired Properties was accounted for as an acquisition under the acquisition method of accounting and recognized at the estimated fair value of acquired assets and assumed liabilities on the date of the contribution.

Accordingly, the results of operations for the three and six months ended June 30, 2010 reflect the financial condition and operating results of our Predecessor only. The results of operations for the three and six months ended June 30, 2011 reflect the financial condition and results of operations of our Predecessor, together with the CoreSite Acquired Properties which we acquired upon completion of our initial public offering and the formation transactions on September 28, 2010, the date of acquisition. The accompanying condensed consolidated financial statements include the following entities and properties:


CoreSite Predecessor		Coresite Acquired Properties
CRP Fund V Holdings, LLC		One Wilshire
1656 McCarthy		900 N. Alameda
2901 Coronado		55 S. Market
Coronado-Stender Properties		427 S. LaSalle
70 Innerbelt		1275 K Street
32 Avenue of the Americas		2115 NW 22nd Street
12100 Sunrise Valley		CoreSite, LLC