Investment in Real Estate

9 Months Ended

Sep. 30, 2017

3. Investment in Real Estate

The following is a summary of the properties owned or leased by market at September 30, 2017 (in thousands):


			Buildings and		Construction in
Market	Land		Improvements		Progress		Total Cost
Boston	$	5,154	$	97,991	$	5,807	$	108,952
Chicago		5,493		100,469		11,321		117,283
Denver		—		16,730		379		17,109
Los Angeles		28,467		245,734		38,906		313,107
Miami		728		11,435		2		12,165
New York		2,388		131,095		40,188		173,671
Northern Virginia(1)		23,642		297,633		39,910		361,185
San Francisco Bay(2)		31,386		610,928		16,566		658,880
Total	$	97,258	$	1,512,015	$	153,079	$	1,762,352

(1)

On February 23, 2017, we executed a ten-year lease for 25,000 square feet at a new property, which we refer to as DC2, to further expand our data center presence in Washington D.C, within our Northern Virginia market. DC2 is under construction as of September 30, 2017.

(2)

On August 29, 2017, we acquired a two-acre land parcel adjacent to our existing Santa Clara campus, with a total real estate cost of $12.2 million. In accordance with the purchase and sale agreement, the seller has committed to pay us $0.3 million over six months to assist them to vacate the property. We will account for the $0.3 million of cash receipts as ancillary operations which will reduce the basis of the land parcel. We plan to build a turn-key data center on the acquired land parcel, which we refer to as SV8, upon the receipt of necessary entitlements.