Gladstone Commercial Corporation Announces Closing of Development Loan for Healthcare Facility in Phoenix, AZ
31 July 2014 - 10:37PM
Gladstone Commercial Corporation (Nasdaq:GOOD) (the "Company")
reported today that it closed a $5.6 million second mortgage
development loan for the construction of an 81,371 square foot,
build-to-suit transitional care facility located on a major
hospital campus in Phoenix, Arizona.
Construction is scheduled to be completed in approximately
twelve months and the Company will earn 9.0% interest, paid
currently in cash, on the loan during construction and through
maturity. Prior to completion of the facility, the Company will be
granted a right of first offer to purchase the property. If the
Company does not purchase the property at completion, it will
receive a priority exit fee sufficient to earn an internal rate of
return of 22% when the development loan is repaid upon sale of the
property.
"This investment is the first in a new program to participate
with developers on build-to-suit projects in primary and strong
secondary markets nationwide" said Matt Tucker, Managing Director
of the Company. "This investment establishes our presence in the
Phoenix market and as a capital provider for developers looking to
complete single tenant build to suit office, industrial and
healthcare facilities. This investment provides very good risk
adjusted returns to our shareholders."
"We are excited to close our first development loan, a program
we hope will become an integral part of our long-term growth
strategy; partnering with developers will lead to additional value
creation for our shareholders," said Bob Cutlip, President of the
Company.
Gladstone Commercial's real estate portfolio consists of 93
properties located in 23 states, totaling approximately 10.0
million square feet.
For more information regarding Gladstone Commercial's
development loan program or its activity in the Mid-Western and
Northeastern U.S., please contact Matt Tucker at
matt.tucker@gladstonecompanies.com.
Gladstone Commercial Corporation is a real estate investment
trust (REIT) that invests in and owns net leased industrial,
commercial and retail real property. Additional information can be
found at www.gladstonecompanies.com.
All statements contained in this press release, other than
historical facts, may constitute "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Words such as "anticipates," "expects," "intends,"
"plans," "believes," "seeks," "estimates" and variations of these
words and similar expressions are intended to identify
forward-looking statements. Readers should not rely upon
forward-looking statements because the matters they describe are
subject to known and unknown risks and uncertainties that could
cause the Company's business, financial condition, liquidity,
results of operations, funds from operations or prospects to differ
materially from those expressed in or implied by such statements.
Such risks and uncertainties are disclosed under the caption "Risk
Factors" of the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 2013, as filed with the SEC on February 18,
2014. The Company cautions readers not to place undue
reliance on any such forward-looking statements which speak only as
of the date made. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
For Investor Relations inquiries related to any of the monthly
dividend paying Gladstone funds, please visit
www.gladstone.com.
CONTACT: For further information:
Gladstone Commercial Corporation +1-703-287-5893
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