Gladstone Commercial Corporation Announces $37.6 Million Office Portfolio Acquisitions in Columbus, OH and Salt Lake City, UT...
December 04 2017 - 8:30AM
Gladstone Commercial Corporation (NASDAQ:GOOD) (“Gladstone
Commercial”) announced today that it completed the acquisition of a
204,587 square foot, Class-A, two office building portfolio in
Columbus, OH and the Salt Lake City, UT suburb of South Jordan for
$37.6 million dollars. The initial capitalization rate for
the acquisition was 8.18%, with an average capitalization rate of
9.23%.
The portfolio is 100% leased with a weighted
average lease term of 8.6 years. Morgan Stanley Smith Barney
Financing, LLC (“MSSBF”) is the anchor tenant and leases 92% of the
portfolio. MSSBF is a major U.S. operating subsidiary of Morgan
Stanley (NYSE:MS), a Fortune 100 financial services firm with an
investment grade rating of A+/A3 (S&P/Moody’s). The acquisition
of the portfolio is consistent with Gladstone Commercial’s growth
strategy of acquiring high-quality assets in strong secondary
growth markets with credit-worthy tenants.
The Columbus asset is a fully leased
three-story, 102,559 square foot office building. MSSBF is
the anchor tenant, leasing 84% of the property through December 31,
2025. The balance of the property is occupied by Congressional
Bank, a privately owned commercial bank, through July 31, 2020. The
Columbus asset has a weighted average lease term of 7.0 years and
has an attractive parking ratio of 6.1 parking spaces per 1,000
square feet. The property, constructed in 2007, is located in
the Easton submarket, a live/work/play location with diverse retail
amenities in the Easton Town Center and in close proximity to
Columbus’ I-270 beltway loop.
The Salt Lake City asset is a three-story,
102,028 square foot office building that is 100% leased to MSSBF
until December 31, 2027. The property, built in 2007, also has an
attractive parking ratio of 5.8 spaces per 1,000 square feet and is
located in close proximity to retail amenities, multifamily
housing, executive housing and only two blocks from the I-15
Freeway and a light rail station.
“This portfolio acquisition should provide
accretive, long term returns to our investors and increases our
weighted average lease term for the Gladstone Commercial
portfolio,” said Matt Tucker, Midwest and Northeast Regional
Managing Director of Gladstone Commercial.
“These assets will add to our current Columbus
and Salt Lake City portfolios, strengthening our presence in strong
secondary growth markets in the U.S. These are the kind of
locations with the live/work/play amenities that today’s office
tenants want,” said Andrew White, Western Regional Managing
Director of Gladstone Commercial.
Bob Cutlip, President of Gladstone Commercial,
agreed. “This transaction is an excellent acquisition in target
markets providing strong near-term returns for our investors while
providing excellent credit quality through the investment grade
tenancy of Morgan Stanley.”
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, 2017, its real estate portfolio consisted of 97
properties located in 24 states, totaling approximately 11.2
million square feet. For additional information please visit
www.gladstonecommercial.com.
For Broker Submittals:
Midwest/Northeast: |
Southeast: |
Matt
Tucker |
Brandon
Flickinger |
Managing Director |
Managing Director |
(703) 287-5830 |
(703) 287-5819 |
Matt.Tucker@gladstonecompanies.com |
Brandon.Flickinger@gladstonecompanies.com |
|
|
West: |
South/Southwest: |
Andrew
White |
Buzz
Cooper |
Managing Director |
Senior Managing
Director |
(310) 953-4960 |
(703) 287-5815 |
Andrew.White@gladstonecompanies.com |
Buzz.Cooper@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, 2016, as filed with the SEC
on February 15, 2017 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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