Gladstone Commercial Announces $5.2 Million Industrial Acquisition in Indianapolis, IN

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[{"type":"text","content":"MCLEAN, Va., Jan. 09, 2020 (GLOBE NEWSWIRE) -- Gladstone Commercial Corporation (Nasdaq: GOOD) (“Gladstone Commercial”) announced today that it completed the acquisition of a 64,800 square foot industrial building in Indianapolis, Indiana on January 8, 2020 for $5.2 million. The initial capitalization rate for the acquisition was 6.72%, with an average capitalization rate of 7.24%. Gladstone Commercial issued common units in its operating partnership to fund a portion of the acquisition.\n The property is 100% leased to three tenants with a weighted average lease term of 7.2 years. The property provides functional warehouse and distribution space for all three tenants as well as functional office space for the anchor tenant, Shambaugh & Son, LP (“Shambaugh”). Shambaugh, a wholly-owned subsidiary of investment grade rated EMCOR Group, Inc., currently occupies 70.4% of the building, is the largest MEP construction services contractor in Indiana, and is ranked the third largest specialty contractor in the United States. Shambaugh’s weighted average remaining lease term is 8.5 years. The remainder of the building is leased by GW Services, LLC and Insta-Clean, LLC. The acquisition of this industrial property is consistent with Gladstone Commercial’s strategy of acquiring high-quality assets with credit-worthy tenants located in its targeted growth markets. This is Gladstone Commercial’s fourth acquisition in the Indianapolis market, and third industrial acquisition in Indianapolis over the trailing 12 months. Additionally, the property is Gladstone Commercial’s second industrial acquisition located in Indianapolis’ Park 100 over the trailing 12 months. “We are pleased to continue growing our industrial presence in the Indianapolis market, a premier industrial market in the Midwest. This anchored multi-tenant property is well located in Park 100, a large and established industrial park with great access to labor and major transportation routes,” 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 industrial buildings in target markets such as Indianapolis, as well as continuing our successful anchored multitenant program with a highly recognized lead t...

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