Gladstone Commercial Corporation Announces $51.4 Million Office Portfolio Acquisition in Orlando, FL
August 01 2017 - 7:10AM
Gladstone Commercial Corporation (NASDAQ:GOOD) (“Gladstone
Commercial”) announced today that it completed the acquisition of a
306,435 square foot, Class-A, three office building portfolio in
the Orlando, FL suburb of Maitland for $51.4 million dollars. The
initial capitalization rate for the acquisition was 7.43%, with an
average capitalization rate of 8.48%.
The portfolio, collectively known as Maitland
Preserve, is 72% leased to ADP, LLC, a wholly-owned indirect
subsidiary of Automatic Data Processing, Inc. (NASDAQ:ADP), through
September 2027. ADP is a Fortune 500 global human capital
management firm with an investment grade rating of ‘AA’ from
S&P. The acquisition of the portfolio is consistent with
Gladstone Commercial’s growth strategy of acquiring high-quality
assets in strong markets with credit-worthy tenants. The portfolio
is 100% leased, and no other tenant represents greater than 8% of
the portfolio.
The portfolio consists of three buildings:
Eastwoods, a five-story, 177,117 square foot office building leased
80% to ADP, Westwoods, a three-story, 79,318 square foot office
building leased 100% to ADP, and Southwoods, a single-story 50,000
square foot office building leased 100% to two tenants. The
portfolio also consists of two parking structures, which bring the
total parking ratio of the portfolio to greater than five spaces
per 1,000 square feet of occupancy. Overall, the portfolio has a
weighted average lease term of 8.7 years.
“This is our first acquisition in the Orlando
MSA, which continues our strategic expansion into both primary and
strong secondary markets in the U.S.,” said Brandon Flickinger,
Managing Director of Gladstone Commercial’s investment adviser.
“The 10-year lease term with ADP will provide attractive stable
returns to our investors over the long term given the attributes of
the real estate and strong macroeconomic drivers of the Orlando
economy.”
Gladstone financed the transaction with a
fixed-rate mortgage at a 3.89% interest rate.
Bob Cutlip, President of Gladstone Commercial,
agreed. “This transaction is an excellent acquisition in a growth
market and continues our historical program of closing with
attractive fixed rate debt on our properties. This strategy
protects our going-forward returns should interest rates rise.”
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, 2017, its real estate portfolio consisted of 95
properties located in 24 states, totaling approximately 10.9
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. 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.
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