Gladstone Commercial Announces $12.0 Million Industrial Acquisition in Stone Mountain, GA

MCLEAN, VA / ACCESSWIRE / December 22, 2021 / On December 21, 2021, Gladstone Commercial Corporation (NASDAQ:GOOD) ("Gladstone Commercial") acquired a 120,000 square foot industrial facility located on 7.5 acres in Stone Mountain, Georgia for $12.0 million. The initial capitalization rate for the acquisition was 6.4%, with an average capitalization rate of 7.3%. The property is Gladstone Commercial's fifth industrial acquisition in Georgia.

The property, acquired in a sale/leaseback transaction, is 100% leased to House of Cheatham LLC, with fifteen (15) years of remaining absolute NNN lease term. House of Cheatham uses the property for manufacture and distribution of its personal and beauty care products serving the multicultural and textured hair care market. The acquisition of the industrial property builds upon Gladstone Commercial's growth plan of acquiring functional, industrial assets with long term leases.

"The acquisition of the House of Cheatham facility is consistent with our core strategy of acquiring well-located assets with long-term net leases occupied by credit-worthy tenants. We are excited to welcome House of Cheatham to our tenant roster," said Buzz Cooper, Chief Investment Officer of Gladstone Commercial.

"We have been very successful acquiring industrial properties through long-term sale/leaseback transactions with private equity sponsors, and we look to continue this success in 2022," stated EJ Wislar, Senior Vice President of Gladstone Commercial.

Bob Cutlip, President of Gladstone Commercial, agreed, "We are glad to close another transaction that will increase our portfolio weighted average lease term and industrial concentration, and we look forward to another strong partnership with a high-quality tenant."

The property was marketed by Chelsea Mandel of STREAM Capital Partners.

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 September 30, 2021, Gladstone Commercial's real estate portfolio consisted of 127 properties located in 27 states, totaling approximately 15.7 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 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 captions "Forward-Looking Statements" and "Risk Factors" of Gladstone Commercial's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as filed with the SEC on February 16, 2021 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. Gladstone Commercial undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

For further information: Gladstone Commercial Corporation, +1-703-287-5893

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SOURCE: Gladstone Commercial Corporation