MCLEAN, Va., Jun 01, 2016 (GLOBE NEWSWIRE via COMTEX) —
Gladstone Commercial Corporation GOOD, -0.05% ("Gladstone Commercial") announced today that it acquired a three-story, 107,626 square foot, single-tenant office building located in Taylorsville, UT, a nearby suburb of the Salt Lake City central business district, for $17.0 million at an average cap rate of 8.40%. The property is located in the West Valley submarket of Salt Lake City, which has an office vacancy rate of 7.7%, which compares favorably to the overall Salt Lake City office vacancy rate of 9.8%.
The property is leased to Convergys Customer Management Group Inc., a wholly-owned subsidiary of Convergys Corporation ("Convergys") CVG, -2.08% under a NNN lease. Convergys is the guarantor on the lease and is rated BB+ by S&P. Convergys is the second largest provider of business process outsourcing solutions in the United States and provides solutions across the customer lifecycle, including sales, customer service, technical support, customer retention, and collections.
"This acquisition marks our second acquisition in the Salt Lake City market and our sixth acquisition in the Western U.S., which continues our strategic expansion into both primary and strong secondary markets in the Western U.S.," said Andrew White, Managing Director of Gladstone Commercial’s Western Region. "The NNN lease to Convergys and the S&P BB+ credit will provide attractive stable returns to our investors over the long term given the attributes of the real estate and strong macroeconomic fundamentals driving the Salt Lake City economy, including Utah’s unemployment rate of 3.5%, which is one of the lowest unemployment rates in the country. The property’s close proximity to retail, housing and public transportation is exactly what tenants are looking for when selecting an office location."
Gladstone Commercial is a real estate investment trust focused on acquiring, owning and operating net leased industrial and office properties across the United States. Gladstone Commercial’s real estate portfolio consists of 99 properties located in 24 states, totaling approximately 11.1 million square feet. For additional information please visit www.gladstonecommercial.com.
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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, 2015, as filed with the SEC on February 17, 2016. 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.
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