Gladstone Commercial Corporation (NASDAQ:GOOD) ("Gladstone Commercial") announced today that it acquired a 240,714 square foot industrial rail-served manufacturing center in Montgomery, Alabama for $14.25 million. The initial capitalization rate for the acquisition was 6.7%, with an average capitalization rate of 7.3%.
The property is 100% leased to WestRock CP, a wholly owned subsidiary of worldwide corrugated solutions leader WestRock Company (NYSE:WRK), which guarantees the lease. Constructed in 1990 as a build-to-suit currently with 7.2 years of remaining lease term, WestRock utilizes the property to manufacture corrugated packaging products. The acquisition is consistent with Gladstone Commercial's growth strategy of acquiring high-quality, mission-critical assets with credit-worthy tenants. Situated on 22 acres, the facility is within the 700-acre Montgomery Interstate Industrial Park, and within an enterprise and Foreign Trade Zone.
"The acquisition of the WestRock facility continues our strategic expansion into our targeted growth locations. The facility serves as a mission-critical manufacturing center with significant tenant investment inside the facility. The acquisition is a great addition to our portfolio" said Buzz Cooper, Senior Managing Director for Gladstone Commercial.
"We are excited to add to our growing presence in Alabama with a mission-critical rail-served facility and an investment-grade tenant who has occupied the facility since 1990" stated EJ Wislar, Principal for Gladstone Commercial.
Bob Cutlip, President of Gladstone Commercial, agreed, "This transaction promotes our strategy of increasing our allocation to industrial buildings in strong growth corridors over the next few years and we are happy to add to the portfolio with high quality real estate."
The JLL Capital Markets team representing the seller was led by Britton Burdette, Dennis Mitchell, Matt Wirth and Crosby Taylor.