Gladstone Commercial Corporation Announces 22% Return from Development Financing for Healthcare Facility in Phoenix, AZ
February 01 2016 - 3:05PM
Gladstone Commercial Corporation (NASDAQ:GOOD) (the “Company” or
“Gladstone Commercial”) reported today that it successfully exited
its $5.9 million second mortgage development loan, which was a
portion of the development financing package that funded the
construction of an 81,000 square foot, build-to-suit transitional
care facility (the “Property”) located on a major hospital campus
in Phoenix, Arizona.
Prior to completion of the Property, the Company
elected not to exercise its right to purchase the Property,
triggering an exit fee due at sale sufficient to earn an internal
rate of return of 22% on the $5.9 million investment. Over
the course of the 18 months that the investment was outstanding,
the Company earned a 1.33 multiple on its
investment.
“This successful investment was the first in a
new program we created to participate with developers on
build-to-suit projects in primary and strong secondary markets
nationwide,” said Matt Tucker, Managing Director of Gladstone
Commercial. “This investment established our presence in the
Phoenix market and as a capital provider for developers looking to
complete single tenant build-to-suit office, industrial and
healthcare facilities. This investment provided very good
risk adjusted returns to our shareholders.”
“We are excited to announce the successful exit
of our first development loan, a program we hope will become an
integral part of the Company’s long-term growth strategy.
Partnering with developers can lead to additional value
creation for our shareholders, either through increasing the
Company’s asset base by acquiring these properties, or recognizing
above market returns by recognizing an exit fee, upon completion,”
said Bob Cutlip, President of Gladstone Commercial.
About Gladstone Commercial
Corporation (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.
Gladstone Commercial’s real estate portfolio consists of 99
properties located in 24 states, totaling approximately 11.0
million square feet. For additional information please visit
www.gladstonecommercial.com.
Development Loan Program Information:
Matt
Tucker |
|
Managing Director |
|
(703) 287-5815 |
|
Matt.Tucker@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 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 caption "Risk Factors" of Gladstone Commercial's Annual
Report on Form 10-K for the fiscal year ended December 31,
2014, as filed with the SEC on February 18, 2015 and its Form
10-Q for the quarter ended June 30, 2015, as filed with the SEC on
August 3, 2015. 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.
For Investor Relations inquiries related to any of the monthly
dividend paying Gladstone funds, please visit
www.gladstone.com.
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