Gladstone Commercial Corporation Announces $17.0 Million Office Property Acquisition in Salt Lake City, UT
June 01 2016 - 8:15AM
Gladstone Commercial Corporation (NASDAQ:GOOD) (“Gladstone
Commercial”) announced today that it acquired a three-story,
107,626 square foot, single-tenant office building located in
Taylorsville, UT, a nearby suburb of the Salt Lake City central
business district, for $17.0 million at an average cap rate of
8.40%. The property is located in the West Valley submarket of Salt
Lake City, which has an office vacancy rate of 7.7%, which compares
favorably to the overall Salt Lake City office vacancy rate of
9.8%.
The property is leased to Convergys Customer
Management Group Inc., a wholly-owned subsidiary of Convergys
Corporation (“Convergys”) (NYSE:CVG), under a NNN lease. Convergys
is the guarantor on the lease and is rated BB+ by S&P.
Convergys is the second largest provider of business process
outsourcing solutions in the United States and provides solutions
across the customer lifecycle, including sales, customer service,
technical support, customer retention, and collections.
“This acquisition marks our second acquisition
in the Salt Lake City market and our sixth acquisition in the
Western U.S., which continues our strategic expansion into both
primary and strong secondary markets in the Western U.S.,” said
Andrew White, Managing Director of Gladstone Commercial’s Western
Region. “The NNN lease to Convergys and the S&P BB+ credit will
provide attractive stable returns to our investors over the long
term given the attributes of the real estate and strong
macroeconomic fundamentals driving the Salt Lake City economy,
including Utah’s unemployment rate of 3.5%, which is one of the
lowest unemployment rates in the country. The property’s close
proximity to retail, housing and public transportation is exactly
what tenants are looking for when selecting an office
location.”
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 99
properties located in 24 states, totaling approximately 11.1
million square feet. For additional information please visit
www.gladstonecommercial.com.
For Broker Submittals:
West: |
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Midwest/Northeast: |
Andrew
White |
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Matt
Tucker |
Managing Director |
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Managing Director |
(310) 953-4960 |
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(703) 287-5830 |
Andrew.White@gladstonecompanies.com |
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Matt.Tucker@gladstonecompanies.com |
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South/Southwest: |
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Tennessee/Kentucky: |
Buzz
Cooper |
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Brandon
Flickinger |
Senior Managing
Director |
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Director |
(703) 287-5815 |
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(703) 287-5819 |
Buzz.Cooper@gladstonecompanies.com |
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Brandon.Flickinger@gladstonecompanies.com |
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Investor or Media Inquiries:
Bob
Cutlip |
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President –
Gladstone Commercial Corporation |
(703) 287-5878 |
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Bob.Cutlip@gladstonecompanies.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 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.
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