Gladstone Expands Office Portfolio With $38M Buy
- Dec 08, 2017
Gladstone Commercial Corp. has added two new buildings to its office portfolio, totaling 204,587 square feet. The assets are located in Columbus, Ohio, and Salt Lake City and were previously owned by Morgan Stanley. The entire acquisition cost the buyer $37.6 million.
“This transaction is an excellent acquisition in target markets providing strong near-term returns for our investors and excellent credit quality through the investment grade tenancy of Morgan Stanley,” said Bob Cutlip, president of Gladstone Commercial, in a prepared statement. The average capitalization rate is approximately nine percent, higher than that of another recent office acquisition that the company completed in Orlando, Fla.
Both properties are fully leased, the weighted average lease term being 8.6 years, and feature live-work-play locations. Morgan Stanley Smith Barney Financing (MSSBF) is the anchor tenant, the company occupying 92 percent of the space available across the buildings.
The Columbus asset, completed in 2007, is located at 4343 Easton Commons, close to Interstate 270’s beltway loop. It has three stories and 102,559 square feet. MSSBF occupies 84 percent of the building while the rest is occupied by Congressional Bank. The weighted average lease term is seven years.
The other property, Jordan Valley Tech Center, was also completed in 2007 and is fully leased to MSSBF for the next 10 years. Located at 680 W. Shields Lane in Salt Lake City’s South Jordan submarket, the building is only two blocks from Interstate 15 and within walking distance of several retail stores and communities.
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