Gladstone Commercial Announces Industrial Acquisition in the Chicago, Illinois MSA

Rhea-AI Summary

Gladstone Commercial Corporation (Nasdaq:GOOD) has acquired a 76,000 square foot industrial facility in Riverdale, Illinois, with a weighted GAAP capitalization rate of 9.7%. The property is fully leased to American Roller Company under a 20-year absolute NNN lease, aligning with Gladstone's strategy to acquire assets leased to credit-worthy tenants. This acquisition enhances Gladstone's industrial portfolio, with a focus on mission-critical facilities in strong markets. The deal is expected to improve the weighted average lease term and increase the company's industrial concentration, showcasing growth in its sale-leaseback platform.

Positive

• Acquisition of a 76,000 square foot facility at a 9.7% cap rate enhances portfolio.
• Long-term lease (20 years) with a credit-worthy tenant, American Roller Company.
• Strengthens Gladstone's presence in industrial markets.
• Improves weighted average lease term and increases industrial asset concentration.

Negative

• None.

MCLEAN, VA / ACCESSWIRE / April 17, 2023 / Gladstone Commercial Corporation (Nasdaq:GOOD) ("Gladstone Commercial") has acquired a 76,000 square foot industrial manufacturing facility in Riverdale, Illinois at a weighted GAAP capitalization rate of 9.7%.

The property was acquired in a long-term sale/leaseback transaction with a 20-year absolute NNN lease. The property is 100% leased to American Roller Company, a diversified, outsourced maintenance and repair business providing a full suite of turnkey surface enhancement solutions for industrial equipment used across multiple end markets. The acquisition is consistent with Gladstone Commercial's growth strategy of acquiring functional assets leased to credit-worthy tenants in strong industrial markets.

"We are excited to continue expanding our industrial portfolio with a new, credit-worthy tenant and are pleased to add a well-located asset in a top industrial market with strong underlying fundamentals," stated Ryan Carter, Executive Vice President of Gladstone Commercial.

"This transaction continues our core strategy of acquiring mission critical, industrial facilities in growth markets. This investment is a great addition to our portfolio, as it improves our weighted average lease term and increases our industrial concentration, providing yet another case study for our industrial sale-leaseback platform," said Buzz Cooper, 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 December 31, 2022, Gladstone Commercial's real estate portfolio consisted of 137 properties located in 27 states, totaling approximately 17.2 million square feet. For additional information, please visit www.gladstonecommercial.com.

For Broker Submittals:

EJ Wislar	Ryan Carter
Chief Investment Officer	Executive Vice President
(703) 462-1027	(571) 451-0019
EJ.Wislar@gladstonecompanies.com	Ryan.Carter@gladstonecompanies.com

Investor or Media Inquiries:

Buzz Cooper
President
(703) 287-5815
Buzz.Cooper@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 the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as filed with the SEC on February 22, 2023, and certain other filings made 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. 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, except as required by law.

For further information:

Gladstone Commercial Corporation, (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/749348/Gladstone-Commercial-Announces-Industrial-Acquisition-in-the-Chicago-Illinois-MSA

FAQ

What is the recent acquisition by Gladstone Commercial Corporation?

Gladstone Commercial has acquired a 76,000 square foot industrial manufacturing facility in Riverdale, Illinois, at a 9.7% capitalization rate.

Who is the tenant of the newly acquired facility by GOOD?

The facility is fully leased to American Roller Company under a long-term 20-year lease.

How does the acquisition affect Gladstone Commercial's business strategy?

This acquisition aligns with Gladstone's strategy of acquiring functional assets leased to credit-worthy tenants, enhancing its industrial portfolio.

What are the expected benefits of the acquisition for Gladstone Commercial?

The acquisition is expected to improve the weighted average lease term and increase the company's concentration in industrial assets.