Gladstone Commercial Corporation announced that it completed the acquisition of a 64,800 square foot industrial building in Indianapolis, Indiana on January 8, 2020 for $5.2 million. The initial capitalization rate for the acquisition was 6.72%, with an average capitalization rate of 7.24%. Gladstone Commercial issued common units in its operating partnership to fund a portion of the acquisition.

The property is 100% leased to three tenants with a weighted average lease term of 7.2 years. The property provides functional warehouse and distribution space for all three tenants as well as functional office space for the anchor tenant, Shambaugh & Son, LP (“Shambaugh”). Shambaugh's weighted average remaining lease term is 8.5 years.

The remainder of the building is leased by GW Services, LLC and Insta-Clean, LLC. The acquisition of this industrial property is consistent with Gladstone Commercial's strategy of acquiring high-quality assets with credit-worthy tenants located in its targeted growth markets. This is Gladstone Commercial's fourth acquisition in the Indianapolis market, and third industrial acquisition in Indianapolis over the trailing 12 months.

Additionally, the property is Gladstone Commercial's second industrial acquisition located in Indianapolis' Park 100 over the trailing 12 months.