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Gladstone Commercial Buys Aurora Property

Zacks Equity Research

Gladstone Commercial Corp. (GOOD) has acquired a 124,800 square foot building in the Denver suburb of Aurora, CO. The property belonged to Barton Supply, a privately owned portfolio company of Kodiak Building Partners. Financial details of the deal have not been disclosed.

The acquisition is aligned with the company’s strategic expansion in the primary and secondary markets of the Western U.S. Notably, the acquired property, located in a prime business area, is well connected with rail, highways and airport.

The building has been leased back for 15 years to Barton Supply, which deals in rebar fabrication, structural and various steel and concrete construction accessories in the residential and commercial markets. This long-term lease is expected to fetch stable returns to investors, going forward. Besides, the availability of excess land in the property indicates scope for expansion.

McLean, VA-based Gladstone Commercial is a real estate investment trust (:REIT), engaged in the investment and ownership of net leased commercial, industrial and retail real estate properties. Currently, the company has a presence in 23 states. Its real estate portfolio consists of 93 properties, spanning over 10.0 million square feet.

Recently, Gladstone Commercial inked several acquisition deals, the latest one being the seventh this year. In May, it acquired a three-storied, 114,786 square foot, multi-tenant office building in Columbus, OH, for $11.8 million. Three weeks before that, the company purchased a 61,358 square foot, creative office building in Rancho Cordova, CA for $8.2 million. In first-quarter 2014, the company purchased two properties, spanning 41,509 square feet, at an aggregate purchase price of $10.0 million.

Gladstone Commercial currently has a Zacks Rank #3 (Hold). Some better-ranked equity REITs include Aviv REIT, Inc. (AVIV), Parkway Properties Inc. (PKY) and Terreno Realty Corp. (TRNO). Each of these stocks sports a Zacks Rank #1 (Strong Buy).

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