MCLEAN, Va., June 26, 2017 (GLOBE NEWSWIRE) -- Gladstone Commercial Corporation (NASDAQ:GOOD) (“Gladstone Commercial”) announced today that it completed the acquisition of a 60,016 square foot, Class-A single-tenant office building located in the Philadelphia, PA suburb of Conshohocken for $15.45 million dollars.
The acquisition of this property, leased for the next 8.5 years to Jacobs Engineering Group, Inc. (“Jacobs”), illustrates Gladstone Commercial’s commitment to acquiring well located, mission-critical real estate leased to quality tenants. Jacobs is a publicly-traded, Fortune 500 design and construction contractor. Jacobs has occupied the building since completion in 1996.
The property was purchased from an affiliate of Oliver Tyrone Pulver Corporation (“OTP”), the original developer of the property, and Gladstone Commercial has retained OTP as property manager post-acquisition. OTP is a privately held commercial real estate development and management firm with a 40-year history of developing, operating and managing over 14 million square feet of first-class office buildings in major cities and suburbs including Chicago, Cleveland, Pittsburgh and Philadelphia. Robert Fahey and Jerry Kranzel of CBRE represented OTP in the sale.
“This is our first acquisition in the Conshohocken submarket of Philadelphia, which continues our strategic growth in both primary and strong secondary markets in the U.S.,” said Matt Tucker, Managing Director of Gladstone Commercial. “The 8.5 years of remaining lease term will provide our investors attractive stable returns during the primary lease term, and good upside potential given the high quality of the real estate, the strength of the Conshohocken submarket and strong macroeconomic drivers of the Philadelphia economy.”
Bob Cutlip, President of Gladstone Commercial, agreed, “This transaction is an excellent acquisition in a sound 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.” Gladstone Commercial assumed the existing fixed rate mortgage on the property. The mortgage has approximately 8.8 years of remaining term and a rate of 3.55%.
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:
|Matt Tucker||Brandon Flickinger|
|(703) 287-5830||(703) 287-5819|
|Andrew White||Buzz Cooper|
|Managing Director||Senior Managing Director|
|(310) 953-4960||(703) 287-5815|
Investor or Media Inquiries:
|President – Gladstone Commercial Corporation|
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.
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Source:Gladstone Commercial Corporation