Gladstone Commercial Announces $19.3 Million Industrial Portfolio Acquisition

Rhea-AI Summary

Gladstone Commercial Corporation (NASDAQ:GOOD) has acquired a 260,719 square foot industrial portfolio in Fort Payne, AL, and Cleveland, OH, for $19.3 million, achieving a GAAP capitalization rate of 6.80%. The properties are fully leased to Plasman for 11.4 years, specializing in automotive components. This acquisition aligns with Gladstone's strategy of securing high-quality assets leased to credible tenants, enhancing their industrial property allocation.

Positive

• Acquisition aligns with growth strategy of acquiring functional assets leased to credit-worthy tenants.
• Portfolio is fully leased to Plasman for 11.4 years, ensuring stable revenue.
• Increases allocation of high-quality industrial properties, improving portfolio metrics.

Negative

• None.

MCLEAN, VA / ACCESSWIRE / May 5, 2022 / On May 4, 2022, Gladstone Commercial Corporation (NASDAQ:GOOD) acquired a 260,719 square foot, two-property, industrial portfolio, with locations in Fort Payne, AL, and Cleveland, OH, for a gross purchase price of $19.3 million at a GAAP capitalization rate of 6.80%.

The portfolio is 100% leased to Plasman™ with 11.4 years of remaining absolute NNN lease term. Plasman™ produces automotive bumpers, facias, grilles, and exterior trim components for major OEM brands, and is a significant player in the consumer goods market, specializing in precision molding. The acquisition of this industrial portfolio is consistent with Gladstone Commercial's growth strategy of acquiring functional assets leased to credit-worthy tenants.

"We are excited to expand our industrial presence in Alabama and Ohio. Both facilities are mission critical assets for a strong tenant, and we are pleased to add two high-quality manufacturing buildings to the portfolio," stated EJ Wislar, Senior Vice President of Gladstone Commercial.

"The acquisition of the facilities continues our strategic expansion into growth markets. This investment is a great addition to our portfolio, improving the weighted average lease term and increasing the allocation of high-quality industrial properties," said Buzz Cooper, Co-President of Gladstone Commercial.

Bob Cutlip, Co-President, agreed, "This transaction builds upon our strategy to increase our portfolio allocation to industrial buildings. Both locations are within close proximity to Plasman's customer base, and we are excited to add a new credit-worthy tenant to our portfolio."

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 March 31, 2022, Gladstone Commercial's real estate portfolio consisted of 131 properties located in 27 states, totaling approximately 16.4 million square feet. For additional information please visit www.gladstonecommercial.com.

For Broker Submittals:

South Central:	Southeast/Northeast:
Buzz Cooper	EJ Wislar
Co-President	Senior Vice President
(703) 287-5815	(703) 462-1027
Buzz.Cooper@gladstonecompanies.com	EJ.Wislar@gladstonecompanies.com
Midwest/West:
Ryan Carter
Executive Vice President
(571) 451-0019
Ryan.Carter@gladstonecompanies.com

Investor or Media Inquiries:

Bob Cutlip
Co-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 Gladstone Commercial'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 captions "Forward-Looking Statements" and "Risk Factors" of Gladstone Commercial's Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the SEC on February 15, 2022 and certain other filings we make with the SEC. Gladstone Commercial cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date made. Gladstone Commercial undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

For further information: Gladstone Commercial Corporation, +1-703-287-5893

For Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.gladstonecompanies.com.

SOURCE: Gladstone Commercial Corporation

View source version on accesswire.com:
https://www.accesswire.com/699546/Gladstone-Commercial-Announces-193-Million-Industrial-Portfolio-Acquisition

FAQ

What is the recent acquisition made by Gladstone Commercial (GOOD)?

Gladstone Commercial acquired a 260,719 square foot industrial portfolio for $19.3 million.

What is the significance of the acquisition for Gladstone Commercial (GOOD)?

The acquisition enhances Gladstone's portfolio with high-quality properties leased to a strong tenant, Plasman.

How does the acquisition impact Gladstone Commercial's portfolio metrics?

It improves the weighted average lease term and increases the allocation of industrial properties.

What is the lease term for the properties acquired by Gladstone Commercial (GOOD)?

The properties have a remaining lease term of 11.4 years.

What is the capitalization rate for Gladstone Commercial's recent acquisition?

The acquisition was made at a GAAP capitalization rate of 6.80%.