Gladstone Commercial Corporation Announces Expansion and Lease Extension of Industrial Facility in Vance, AL
MCLEAN, Va., Oct. 13, 2016 (GLOBE NEWSWIRE) -- Gladstone Commercial Corporation (NASDAQ:GOOD) (“Gladstone Commercial”) announced today that the tenant in its existing 170,000 square foot light industrial manufacturing facility in Vance, Alabama has exercised its expansion right. Gladstone Commercial will expand the property by 75,000 square feet for an estimated project cost of $7.0 million. Upon completion of the expansion, the tenant will enter into a new 225,000 square foot 10-year lease.
Gladstone Commercial acquired the property for $13.4 million in May 2013. The seller-developer constructed the property as a forward build-to-suit for the tenant that is strategically located near a key customer. The property had an initial 10-year lease that ran through April 2023. Upon completion of the expansion premises, the lease term for the entire property will be reset for a new 10-year firm term upon construction completion. The re-set going-in cap rate will be 9.50% with an average cap rate of 10.40% over the 10-year lease term. Lease commencement is anticipated to occur in the 3rd quarter of 2017.
“Expanding this high quality facility that supports a major auto assembly plant is consistent with our growth strategy,” said Buzz Cooper, Senior Managing Director of Gladstone Commercial. “All parties were involved from the initial stages of the original investment and worked together to complete a successful transaction.”
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 97 properties located in 24 states, totaling approximately 11.0 million square feet. For additional information please visit www.gladstonecommercial.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, 2015, as filed with the SEC on February 17, 2016. 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.
For Broker Submittals: South/Southwest: Buzz Cooper Senior Managing Director (703) 287-5815 buzz.cooper@gladstonecompanies.com Tennessee/Kentucky: Brandon Flickinger Director, Real Estate (703) 287-5819 brandon.flickinger@gladstonecompanies.com West: Andrew White Managing Director (310) 953-4960 andrew.white@gladstonecompanies.com Midwest/Northeast: Matt Tucker Managing Director (703) 287-5830 matt.tucker@gladstonecompanies.com Investor or Media Inquiries: Bob Cutlip President – Gladstone Commercial Corporation (703) 287-5878 bob.cutlip@gladstonecompanies.com
Released October 13, 2016