MCLEAN, Va., June 26, 2017 (GLOBE NEWSWIRE) -- Gladstone Commercial Corporation (NASDAQ:GOOD) 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.
