Gladstone Commercial Announces $10.6 Million Industrial Acquisition in Central Indiana

MCLEAN, Va., Sept. 02, 2020 (GLOBE NEWSWIRE) -- Gladstone Commercial Corporation (Nasdaq: GOOD) (“Gladstone Commercial”) announced today that it acquired a 153,600 square foot distribution building in Terre Haute, Indiana on September 1, 2020 for $10.6 million. The initial capitalization rate for the acquisition was 7.3%, with an average capitalization rate of 8.0%.  

The property was constructed as a build-to-suit for the tenant in 2010. The property is a fully-conditioned, food grade, insulated concrete tilt-up, rectangular front loading building with nine dock doors, one drive-in and 32’ clear heights. The truck court measures 130 feet in depth. Column spacing is 70’ x 60’ at the sides of the building and 60’ x 60’ in the interior of the building.

The property is 100% leased by Clabber Girl Corporation (“Clabber Girl”) with a full guaranty from Clabber Girl’s publicly traded parent company, B&G Foods (NYSE: BGS). Clabber Girl is the top manufacturer of branded retail baking powder, baking soda and corn starch. The facility is the tenant’s only distribution facility and is located approximately five miles from the tenant’s corporate headquarters and primary manufacturing facility. Clabber Girl has been headquartered in Terre Haute for over 150 years. B&G Foods and its subsidiaries manufacture, sell and distribute high quality, branded shelf-stable and frozen foods across the United States and Canada. The seller was exclusively represented by Jeff Castell SIOR, CCIM – Executive Director for Cushman & Wakefield’s Industrial Capital Markets group, based out of Indianapolis, Indiana.

The acquisition of this industrial property is consistent with Gladstone Commercial’s strategy of acquiring high-quality industrial assets with credit-worthy tenants located in its targeted growth markets. This is Gladstone Commercial’s fifth acquisition in Central Indiana, and fourth industrial acquisition in Central Indiana since January 2019.

“We are pleased to continue growing our industrial presence in the Central Indiana market along the I-70 corridor, a premier industrial corridor in the Midwest. We also are excited to have Clabber Girl as a long term tenant with the support of their parent company B&G Foods. This property is well located at a prominent I-70 interchange, providing great access to the primary east/west corridor in the US,” said Matt Tucker, Senior Managing Director and head of the Northeast/Midwest region for Gladstone Commercial. Bob Cutlip, President of Gladstone Commercial, agreed, “This transaction continues our strategy of increasing our allocation to high quality industrial buildings in great distribution locations.”

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 June 30, 2020, Gladstone Commercial’s real estate portfolio consisted of 122 properties located in 28 states, totaling approximately 15.1 million square feet. For additional information please visit www.gladstonecommercial.com.

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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 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 the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the SEC on February 12, 2020 and certain other filings we make with the SEC.  Gladstone Commercial 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