Gladstone Commercial Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Real Estate and Accumulated Depreciation

Real Estate and Accumulated Depreciation

12 Months Ended

Dec. 31, 2011

Real Estate and Accumulated Depreciation [Abstract]

REAL ESTATE AND ACCUMULATED DEPRECIATION

GLADSTONE COMMERCIAL CORPORATION

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2011 (Dollars in Thousands)


			Initial Cost							Total Cost
Location of Property	Encumbrances		Land		Buildings & Improvements		Costs Capitalized Subsequent to Acquisition			Land		Buildings & Improvements		Total ⁽¹⁾		Accumulated Depreciation ⁽²⁾		Net Real Estate		Date Acquired
Raleigh, North Carolina Office Building	$	4,939	$	960	$	4,481	$	—		$	960		4,481	$	5,441	$	1,362	$	4,079		12/23/2003
Canton, Ohio Office & Warehouse Building		2,816		186		3,083		—			186		3,083		3,269		697		2,572		1/30/2004
Akron, Ohio Office & Laboratory Building		7,217		1,973		6,771		285			1,973		7,056		9,029		1,372		7,657		4/29/2004
Charlotte, North Carolina Office Building		6,690		740		8,423		60			741		8,483		9,224		1,655		7,569		6/30/2004
Canton, North Carolina Commercial & Manufacturing Building		2,314		150		5,050		—			150		5,050		5,200		968		4,232		7/6/2004
Snyder Township, Pennsylvania Commercial & Warehouse Building		5,462		100		6,574		169			100		6,743		6,843		1,264		5,579		8/5/2004
Lexington, North Carolina Commercial & Warehouse Building		2,771		820		2,107		6			820		2,113		2,933		402		2,531		8/5/2004
Austin, Texas Office Building		6,500		1,000		6,296		46			1,000		6,342		7,342		1,217		6,125		9/16/2004
Mt. Pocono, Pennsylvania Commercial & Manufacturing Building		5,113		350		5,819		18			350		5,837		6,187		1,095		5,092		10/15/2004
San Antonio, Texas Flexible Office Building		6,982		843		7,514		22			843		7,536		8,379		1,757		6,622		2/10/2005
Columbus, Ohio Industrial Building		2,655		410		2,385		—			410		2,385		2,795		425		2,370		2/10/2005
Big Flats, New York Industrial Building		5,587		275		6,459		34			275		6,493		6,768		1,124		5,644		4/15/2005
Wichita, Kansas Office Building		8,129		1,525		9,703		67			1,525		9,770		11,295		1,756		9,539		5/18/2005
Arlington, Texas Warehouse & Bakery Building		4,008		636		3,695		416			636		4,111		4,747		663		4,084		5/26/2005
Dayton, Ohio Office Building		1,984		525		1,877		120			525		1,997		2,522		506		2,016		6/30/2005
Eatontown, New Jersey Office Building		4,545		1,351		3,520		403			1,351		3,923		5,274		674		4,600		7/7/2005
Frankling Township, New Jersey Office & Warehouse Building		6,739		1,632		6,200		—			1,632		6,200		7,832		1,033		6,799		7/11/2005
Duncan, South Carolina Office & Warehouse Building		11,005		783		10,790		1,629			783		12,419		13,202		2,023		11,179		7/14/2005
Duncan, South Carolina Manufacturing Building		2,735		195		2,682		405			195		3,087		3,282		503		2,779		7/14/2005
Hazelwood, Missouri Office & Warehouse Building		2,360		763		2,309		30			763		2,339		3,102		402		2,700		8/5/2005
Angola, Indiana Industrial Building		571		66		1,075		49			66		1,124		1,190		177		1,013		9/2/2005
Angola, Indiana Industrial Building		1,142		132		1,130		51			132		1,181		1,313		186		1,127		9/2/2005
Rock Falls, Illinois Industrial Building		305		35		1,113		50			35		1,163		1,198		183		1,015		9/2/2005
Newburyport, Massachusetts Industrial Building		6,593		629		6,504		1,847			629		8,351		8,980		1,219		7,761		10/17/2005
Clintonville, Wisconsin Industrial Manufacturing Building		3,263		55		4,717		—			55		4,717		4,772		768		4,004		10/31/2005
Maple Heights, Ohio Industrial Building		10,332		1,609		10,065		1,124			1,609		11,189		12,798		2,013		10,785		12/21/2005
Richmond, Virginia Industrial Building		5,275		736		5,336		36			736		5,372		6,108		878		5,230		12/30/2005
Toledo, Ohio Industrial Building		2,889		263		2,812		40			263		2,852		3,115		507		2,608		12/30/2005
South Hadley, Massachusetts Industrial Building		—		471		2,765		10			471		2,775		3,246		417		2,829		2/15/2006
Champaign, Illinois Office Building		1,667		687		2,036		2			687		2,038		2,725		342		2,384		2/21/2006
Champaign, Illinois Office Building		3,268		1,347		3,992		4			1,347		3,996		5,343		670		4,672		2/21/2006
Champaign, Illinois Office Building		2,042		842		2,495		2			842		2,497		3,339		419		2,920		2/21/2006
Champaign, Illinois Office Building		1,868		770		2,281		2			770		2,283		3,053		383		2,670		2/21/2006
Roseville, Minnesota Office Building		18,345		2,588		25,290		—			2,588		25,290		27,878		4,633		23,245		2/21/2006
Burnsville, Minnesota Office Building		11,556		3,511		8,746		—			3,511		8,746		12,257		1,678		10,579		5/10/2006
Menomonee Falls, Wisconsin Industrial Building		6,940		625		6,911		57			625		6,968		7,593		995		6,598		6/30/2006
Baytown, Texas Office Building		2,000		221		2,443		—			221		2,443		2,664		396		2,268		7/11/2006
Sterling Heights, Michigan ⁽⁴⁾Industrial Building		—		2,735		8,606		13			2,735		8,619		11,354		1,166		10,188		9/22/2006
Birmingham, Alabama ⁽⁴⁾ Industrial Building		—		612		2,326		—			612		2,326		2,938		321		2,617		9/29/2006
Montgomery, Alabama ⁽⁴⁾Industrial Building		—		222		844		—			222		844		1,066		116		950		9/29/2006
Columbia, Missouri ⁽⁴⁾Industrial Building		—		146		555		—			146		555		701		77		624		9/29/2006
Mason, Ohio Office Building		5,357		797		6,258		48			797		6,306		7,103		1,014		6,089		1/5/2007
Raleigh, North Carolina Industrial Building		5,401		1,606		5,513		—			1,606		5,513		7,119		707		6,412		2/16/2007
Tulsa, Oklahoma Manufacturing Building		8,500		—		14,057		—			—		14,057		14,057		2,043		12,014		3/1/2007
Hialeah, Florida Industrial Building		—		3,562		6,672		273			3,562		6,945		10,507		844		9,663		3/9/2007
Tewksbury, Massachusetts ⁽⁴⁾Industrial Building		—		1,395		8,893		—			1,395		8,893		10,288		1,142		9,146		5/17/2007
Mason, Ohio Retail Building		4,764		1,201		4,961		—			1,201		4,961		6,162		580		5,582		7/1/2007
Cicero, New York Industrial Building		4,219		299		5,019		—			299		5,019		5,318		556		4,762		9/6/2007
Grand Rapids, Michigan Office Building		9,152		1,629		10,500		—			1,629		10,500		12,129		1,226		10,903		9/28/2007
Bollingbrook, Illinois Industrial Building		4,929		1,272		5,003		—			1,272		5,003		6,275		583		5,692		9/28/2007
Decatur, Georgia Office Building		3,257		784		3,245		—			784		3,245		4,029		354		3,676		12/13/2007
Decatur, Georgia Office Building		851		205		848		—			205		848		1,053		93		960		12/13/2007
Decatur, Georgia Office Building		1,068		257		1,064		—			257		1,064		1,321		116		1,205		12/13/2007
Lawrenceville, Georgia Office Building		2,820		679		2,809		—			679		2,809		3,488		307		3,181		12/13/2007
Snellville, Georgia Office Building		732		176		729		—			176		729		905		80		825		12/13/2007
Covington, Georgia Office Building		963		232		959		—			232		959		1,191		105		1,085		12/13/2007
Cumming, Georgia Office Building		3,066		738		3,055		—			738		3,055		3,793		334		3,459		12/13/2007
Conyers, Georgia Office Building		1,233		297		1,228		—			297		1,228		1,525		134		1,391		12/13/2007
Reading, Pennsylvania Industrial Building		5,216		491		6,202		—			491		6,202		6,693		626		6,067		1/29/2008
Fridley, Minnesota ⁽⁴⁾ Office Building		—		1,354		8,074		—			1,383		8,074		9,457		1,112		8,345		2/26/2008
Concord Township, Ohio ⁽⁴⁾ Industrial Building		—		1,796		11,154		—			1,786		11,154		12,940		1,154		11,786		3/31/2008
Pineville, North Carolina Industrial Building		2,128		669		3,028		6			669		3,034		3,703		294		3,409		4/30/2008
Marietta, Ohio Industrial Building		4,464		829		6,607		209			829		6,816		7,645		575		7,070		8/29/2008
Chalfont, Pennsylvania Industrial Building		6,019		1,249		6,420		—			1,249		6,420		7,669		663		7,006		8/29/2008
Orange City, Iowa Office and Warehouse Building		10,402		132		9,383		(3,522	)⁽³⁾		257		5,861		6,118		193		5,925		12/7/2010
Hickory, NC ⁽⁴⁾ Office Building		—		1,163		6,605		—			1,163		6,605		7,768		225		7,543		4/4/2011
Springfield, MO Office Building		11,505		1,700		12,038		—			1,700		12,038		13,738		191		13,547		6/20/2011
Boston Heights, OH Office Building		—		449		3,010		—			449		3,010		3,459		26		3,433		10/20/2011
Parsippany, NJ Office Building		7,190		1,696		7,077		—			1,696		7,077		8,773		47		8,726		10/27/2011
Dartmouth, MA Retail Location		4,352		—		4,236		—			—		4,236		4,236		14		4,222		11/18/2011
Springfield, MO Retail Location		—		—		2,275		—			—		2,275		2,275		4		2,271		12/13/2011
Pittsburgh, PA Office Building		—		281		3,205		—			281		3,205		3,486		1		3,485		12/28/2011

	$	286,193	$	60,457	$	377,907	$	4,011		$	60,602	$	381,919	$	442,521	$	53,784	$	388,737

⁽¹⁾	The aggregate cost for land and building improvements for federal income tax purposes is the same as the total gross cost of land and building improvements.

⁽²⁾	Depreciable life of all buildings is 39 years. Depreciable life of all improvements is the shorter of the useful life of the assets or the life of the respective leases on each building, which range from 5-20 years.

⁽³⁾	Refer to Note 1, out of period adjustment.

⁽⁴⁾	These properties were pledged as borrowing base assets under the line of credit.

The following table reconciles the change in the balance of real estate during the years ended December 31, 2011, 2010 and 2009, respectively (Dollars in Thousands):


	2011			2010		2009
Balance at beginning of period	$	401,017		$	390,754	$	390,562
Additions:
Acquisitions during period		43,735			8,901		—
Improvements or other additions		1,164			1,362		1,140
Deductions:
Dispositions during period		—			—		(948	)
Purchase price adjustments		(3,395	)⁽¹⁾		—		—

Balance at end of period	$	442,521		$	401,017	$	390,754

⁽¹⁾	Adjustment to Orange City, Iowa property acquired in December 2010 property purchase price. Refer to Note 1 out of period adjustment.

The following table reconciles the change in the balance of accumulated depreciation during the years ended December 31, 2011, 2010 and 2009, respectively (Dollars in Thousands):


	2011		2010		2009
Balance at beginning of period	$	43,659	$	34,112	$	24,757
Additions during period		10,125		9,547		9,446
Dispositions during period		—		—		(91	)

Balance at end of period	$	53,784	$	43,659	$	34,112

- Definition

The entire disclosure for real estate and accumulated depreciation. This may include a schedule that describes the property and lists the initial cost of land, buildings and improvements, improvements and carrying costs capitalized after acquisition, and the total carrying cost for land, buildings and improvements for each property and in aggregate. The schedule also lists the accumulated depreciation for each property and in aggregate, the date each property was constructed and acquired, the useful life used to calculate depreciation and any encumbrances on the properties. The entity provides a reconciliation of the carrying amount of real estate from the beginning of the period to the end of the period. Any real estate investments that have been written down or reserved against are described, including the basis of the write-down. A material amount of intercompany profit in the total carrying amount of real estate is disclosed. The aggregate cost of all real estate investments for federal income tax purposes is also disclosed.

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