Gladstone Commercial Corporation Announces $21.3 Million Industrial Portfolio Acquisition in Detroit Area
November 01 2018 - 4:32PM
Gladstone Commercial Corporation (NASDAQ: GOOD) (“Gladstone
Commercial”) announced that it completed the acquisition of a two
building, 218,703 SF industrial portfolio in the Detroit, MI
suburbs of Auburn Hills and Sterling Heights for $21.3 million
through an UPREIT transaction, inclusive of assumed debt. The
initial capitalization rate for the acquisition is 7.5%, and the
average (GAAP) capitalization rate is 8.0%.
The portfolio is 100% leased with a weighted average lease term
of 10.5 years. The 144,400 SF Auburn Hills property is 100%
occupied under a 10.2 year lease by Dana Driveshaft Manufacturing,
LLC, a subsidiary of Dana Incorporated (NYSE: DAN). Dana
Incorporated, which guarantees the lease, provides drive and motion
products, sealing solutions, thermal-management technologies, and
fluid-power products to vehicle and engine manufacturers in North
America, Europe, South America, and Asia Pacific. The 74,303 SF
Sterling Heights property is 100% occupied under a 10.9 year lease
by TransForm Automotive, LLC (“TransForm”), a subsidiary of Means
Industries, Inc., which guarantees the lease. TransForm specializes
in various components and assemblies for transmission production
utilizing proprietary stamping, forming, flow forming, machining,
laser-welding and assembly processes.
“This portfolio acquisition expands our industrial presence in
the Detroit Area, where we now own five industrial assets totaling
over 900,000 square feet. The Detroit Area industrial market
fundamentals are favorable, with a vacancy rate below 5%, and long
term trends of positive absorption and rent growth. This
investment should provide accretive, long term returns to our
investors, while increasing our industrial concentration and
weighted average lease term for the Gladstone Commercial
portfolio,” said Matt Tucker, Senior Managing Director of Gladstone
Commercial.
“As our first UPREIT transaction, this acquisition represents
our commitment to utilizing all of the tools at our disposal to
execute our strategy and provide strong returns for our
shareholders, and this investment reinforces our desire to amass
portfolios of high quality properties in our target markets,” said
Bob Cutlip, President of Gladstone Commercial.
About Gladstone Commercial (NASDAQ:
GOOD)
Gladstone Commercial is a real estate investment trust focused
on acquiring, owning and operating net leased industrial and office
properties across the United States. As of September 30, 2018, its
real estate portfolio consisted of 99 properties located in 24
states, totaling approximately 11.6 million square feet. For
additional information please visit
www.gladstonecommercial.com.
For Broker Submittals:
Southwest: |
Midwest/Northeast: |
Buzz Cooper |
Matt
Tucker |
Senior Managing Director |
Senior Managing
Director |
(703) 287-5815 |
(703) 287-5830 |
Buzz.Cooper@gladstonecompanies.com |
Matt.Tucker@gladstonecompanies.com |
|
|
West: |
Southeast: |
Andrew White |
Brandon
Flickinger |
Managing Director |
Managing Director |
(310) 953-4960 |
(703) 287-5819 |
Andrew.White@gladstonecompanies.com |
Brandon.Flickinger@gladstonecompanies.com |
|
|
Investor or Media Inquiries:
Bob
Cutlip |
|
President –
Gladstone Commercial Corporation |
(703) 287-5878 |
|
Bob.Cutlip@gladstonecompanies.com |
|
All statements contained in this press release, other than
historical facts, may constitute “forward-looking statements”
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Words such as “anticipates,” “expects,” “intends,”
“plans,” “believes,” “seeks,” “estimates” and variations of these
words and similar expressions are intended to identify
forward-looking statements. Readers should not rely upon
forward-looking statements because the matters they describe are
subject to known and unknown risks and uncertainties that could
cause the Company’s business, financial condition, liquidity,
results of operations, funds from operations or prospects to differ
materially from those expressed in or implied by such statements.
Such risks and uncertainties are disclosed under the caption “Risk
Factors” of the Company’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2017, as filed with the SEC
on February 14, 2018 and certain other filings we make with
the SEC. The Company cautions readers not to place undue
reliance on any such forward-looking statements which speak only as
of the date made. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
For Investor Relations inquiries related to any of the monthly
dividend paying Gladstone funds, please
visit www.gladstone.com.
SOURCE: Gladstone Commercial Corporation
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