Gladstone Commercial Corporation Announces $3.5 Million Industrial Property Acquisition in Indianapolis
MCLEAN, VA - This week, Gladstone Commercial Corporation announced it completed a $3.5 million acquisition of an industrial freezer/cooler building in Indianapolis, Indiana. The acquisition helps Gladstone Commercial meet its strategy of acquiring high-quality industrial assets in one of its target growth markets.
"This acquisition continues our strategy of growing our industrial allocation by investing in high quality industrial properties in our target markets," said Bob Cutlip, President of Gladstone Commercial.
The building, located in Park 100 and currently occupied by Midwest distributor Indianapolis Fruit Company (IF&P), is 34,800 square feet but is expandable by 13,000 square feet. According to a press release, IF&P provides fresh, frozen, and packaged produce varieties, as well as prepared meal components, to over 7,500 customer locations and over 450 suppliers, including grocery stores, restaurants, schools, and food management companies. The distributor recently executed a long-term NNN lease at the property, with ten years remaining as of the acquisition date.
"This acquisition adds to our overall industrial portfolio and marks our entry into the industrial sector in Indianapolis, a target market for us that has emerged as a major domestic logistics hub," said Matt Tucker, Gladstone Commercial's Senior Managing Director of the Northeast/Midwest Region. "Park 100 is a well-established industrial park with strong fundamentals that provides exceptional infrastructure access. There is limited freezer/cooler space in the Indianapolis market and growing demand, and we expect that trend to continue to the benefit of our shareholders with this investment."
The initial capitalization rate for the acquisition was 7.2%, with an average capitalization rate of 7.9%, according to a press release.
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