Gladstone Commercial Announces $10.6 Million Industrial Acquisition in Central Indiana

MCLEAN, Va., Sept. 02, 2020 (GLOBE NEWSWIRE) -- Gladstone Commercial Corporation (Nasdaq: GOOD) (“Gladstone Commercial”) announced today that it acquired a 153,600 square foot distribution building in Terre Haute, Indiana on September 1, 2020 for $10.6 million. The initial capitalization rate for the acquisition was 7.3%, with an average capitalization rate of 8.0%.  

The property was constructed as a build-to-suit for the tenant in 2010. The property is a fully-conditioned, food grade, insulated concrete tilt-up, rectangular front loading building with nine dock doors, one drive-in and 32’ clear heights. The truck court measures 130 feet in depth. Column spacing is 70’ x 60’ at the sides of the building and 60’ x 60’ in the interior of the building.

The property is 100% leased by Clabber Girl Corporation (“Clabber Girl”) with a full guaranty from Clabber Girl’s publicly traded parent company, B&G Foods (NYSE: BGS). Clabber Girl is the top manufacturer of branded retail baking powder, baking soda and corn starch. The facility is the tenant’s only distribution facility and is located approximately five miles from the tenant’s corporate headquarters and primary manufacturing facility. Clabber Girl has been headquartered in Terre Haute for over 150 years. B&G Foods and its subsidiaries manufacture, sell and distribute high quality, branded shelf-stable and frozen foods across the United States and Canada. The seller was exclusively represented by Jeff Castell SIOR, CCIM – Executive Director for Cushman & Wakefield’s Industrial Capital Markets group, based out of Indianapolis, Indiana.

The acquisition of this industrial property is consistent with Gladstone Commercial’s strategy of acquiring high-quality industrial assets with credit-worthy tenants located in its targeted growth markets. This is Gladstone Commercial’s fifth acquisition in Central Indiana, and fourth industrial acquisition in Central Indiana since January 2019.

“We are pleased to continue growing our industrial presence in the Central Indiana market along the I-70 corridor, a premier industrial corridor in the Midwest. We also are excited to have Clabber Girl as a long term tenant with the support of their parent company B&G Foods. This property is well located at a prominent I-70 interchange, providing great access to the primary east/west corridor in the US,” said Matt Tucker, Senior Managing Director and head of the Northeast/Midwest region for Gladstone Commercial. Bob Cutlip, President of Gladstone Commercial, agreed, “This transaction continues our strategy of increasing our allocation to high quality industrial buildings in great distribution locations.”