Benzinga | Dec 29, 2020 04:31PM EST

Gladstone Commercial Announces $12.8M Industrial Acquisition In Pittsburgh, Pennsylvania

MCLEAN, VA / ACCESSWIRE / December 29, 2020 / Gladstone Commercial Corporation (NASDAQ:GOOD) ("Gladstone Commercial") announced today that it acquired a 155,000 square foot, food-grade manufacturing building in Pittsburgh, Pennsylvania on December 21, 2020, for $12.8 million. The average capitalization rate during the duration of the lease is 7.9%.

The property is a functional, well configured, class A manufacturing and warehouse facility with 28' clear heights. The facility features a truck court with a maximum depth of 150', six loading docks, and 196 surface parking spaces. The property is food-grade certified and provides ample area for multiple production lines and storage for raw materials and finished goods. The building is located on a 9.6-acre site within Pittsburgh's RIDC Industrial Park.

The property is 100% leased by TruFood Mfg., a leading contract manufacturer of private-label and branded nutrition bars, granola bars, protein bars, granola, chocolate molded products, and baked goods. The property is mission-critical to the tenant, as it represents the tenant's largest manufacturing facility and is in the same business park as its headquarters.

The acquisition of this industrial property is consistent with Gladstone Commercial's strategy of acquiring high-quality, industrial assets with credit-worthy tenants, located within its targeted growth markets. This is Gladstone Commercial's second acquisition in Pittsburgh.

"We are pleased to grow our industrial footprint in the Northeast region and are excited to enter the Pittsburgh industrial market. We believe Pittsburgh presents significant opportunity to become a strong growth market for us. We are also excited to have TruFood Mfg. as a long-term tenant," said Matt Tucker, Executive Vice President and Head of the Northeast and Midwest Regions for Gladstone Commercial. Bob Cutlip, President of Gladstone Commercial, agreed, "This transaction continues our strategy of industrial acquisitions in strong secondary growth markets."