The LEED Gold certified data center sits on a 38-acre campus in close proximity to New York City's global financial and business districts. The current facility has built-out capacity representing approximately 18 critical megawatts, and 88,000 square feet of raised floor data center space. QTS plans to strategically redevelop portions of the facility to expand its total raised floor capacity to 176,000 square feet and over 26 megawatts of critical power.
The facility's current customers consist of a major pharmaceutical company, a large media company and several financial services organizations. Ongoing customers occupy approximately 56,000 square feet and 8.4 megawatts of the total available critical power, leaving room for both new customers and an immediate expansion of services.
While the acquired data center was previously marketed exclusively to wholesale customers, QTS plans to utilize its fully integrated technology services 3C platform of custom data centers, colocation and cloud and managed services. The 3C platform, combined with the company's leading security and compliance capabilities, allows QTS to intersect customers in this high demand market.
QTS is confident that, with its cost advantage low-basis acquisition, it can drive incremental utilization and efficiencies, and support QTS' target 15+ percent unlevered return on invested capital upon full stabilization.
The connectivity-rich facility is carrier neutral with 18 carriers, and serves as a point of presence for the Amsterdam Internet Exchange. QTS will develop the facility to support a wide range of power redundancy from N to 2N. The campus has solar panels that produce 2 megawatts of power, which aligns with QTS' sustainability approach. The property also features an onsite 112kVA substation.
The mega data center will provide much needed capacity for QTS' current and potential customers seeking secure and compliant colocation in the Northeast region, and aligns with its growth strategy. QTS has seen previous success in the greater New York / New Jersey market. QTS' 32,000 square foot raised floor Jersey City data center is currently at 95% capacity. QTS Princeton, purchased in 2014, served as the catalyst to QTS' strategic partnership with Atos, and its 58,000 square feet of currently developed raised floor data center space is also at capacity.
QTS expects this transaction to be slightly accretive to its 2016 OFFO per share and AFFO per share, even at the facility's relatively lower utilization. QTS purchased the Piscataway data center utilizing a combination of cash on hand and availability under the existing revolving credit facility. The acquired facility is expected to contribute approximately $7.5 million in annualized recurring revenue and approximately $3.0 million in annualized adjusted EBITDA. This reflects the impact of one customer that has previously provided notice that they will not be renewing their contract in the first quarter of 2017, which represents approximately $1.8 million in annualized recurring revenue. Consistent with purchase accounting, the recognized GAAP revenue contribution from the acquired data center has been marked-to-market to reflect current market pricing on all customer lease agreements.
The transaction closed on June 6 and QTS expects to update its 2016 financial guidance to reflect the acquisition in conjunction with reporting second quarter 2016 earnings.