Gladstone Commercial Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Schedule III - Real Estate and Accumulated Depreciation

Schedule III - Real Estate and Accumulated Depreciation

12 Months Ended

Dec. 31, 2012

Real Estate and Accumulated Depreciation [Abstract]

REAL ESTATE AND ACCUMULATED DEPRECIATION

GLADSTONE COMMERCIAL CORPORATION

SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2012 (Dollars in Thousands)


			Initial Cost				Improvement Costs Capitalized Subsequent to Acquisition			Total Cost
Location of Property	Encumbrances		Land		Buildings & Improvements		Improvement Costs Capitalized Subsequent to Acquisition			Land		Buildings & Improvements		Total (1)		Accumulated Depreciation (2)		Net Real Estate		Year Construction/ Improvements	Date Acquired
Raleigh, North Carolina Office Building	$	4,914	$	960	$	4,481	$	—		$	960	$	4,481	$	5,441	$	1,499	$	3,942	1997		12/23/2003
Canton, Ohio Office & Warehouse Building		2,770		186		3,083		—			186		3,083		3,269		785		2,484	1994		1/30/2004
Akron, Ohio Office & Laboratory Building		7,099		1,973		6,771		285			1,973		7,056		9,029		1,554		7,475	1968/1999		4/29/2004
Charlotte, North Carolina Office Building		6,574		740		8,423		61			740		8,484		9,224		1,876		7,348	1984/1995		6/30/2004
Canton, North Carolina Commercial & Manufacturing Building		3,794		150		5,050		—			150		5,050		5,200		1,098		4,102	1998		7/6/2004
Snyder Township, Pennsylvania Commercial & Warehouse Building		5,375		100		6,574		169			100		6,743		6,843		1,437		5,406	1991		8/5/2004
Lexington, North Carolina Commercial & Warehouse Building		2,730		820		2,107		19			820		2,126		2,946		460		2,486	1986		8/5/2004
Austin, Texas Office Building		6,500		1,000		6,296		66			1,000		6,362		7,362		1,387		5,975	2001		9/16/2004
Mt. Pocono, Pennsylvania Commercial & Manufacturing Building		5,044		350		5,819		18			350		5,837		6,187		1,247		4,940	1995-1999		10/15/2004
San Antonio, Texas Flexible Office Building		6,879		843		7,514		625			843		8,139		8,982		1,949		7,033	1999		2/10/2005
Columbus, Ohio Industrial Building		2,613		410		2,385		—			410		2,385		2,795		487		2,308	1995		2/10/2005
Big Flats, New York Industrial Building		5,520		275		6,459		34			275		6,493		6,768		1,290		5,478	2001		4/15/2005
Wichita, Kansas Office Building		7,929		1,525		9,703		67			1,525		9,770		11,295		2,015		9,280	2000		5/18/2005
Arlington, Texas Warehouse & Bakery Building		3,949		636		3,695		416			636		4,111		4,747		784		3,963	1966		5/26/2005
Dayton, Ohio Office Building		1,951		525		1,877		120			525		1,997		2,522		649		1,873	1956		6/30/2005
Eatontown, New Jersey Office Building		4,491		1,351		3,520		532			1,351		4,052		5,403		783		4,620	1991		7/7/2005
Frankling Township, New Jersey Office & Warehouse Building		6,658		1,632		6,200		(0	)		1,632		6,200		7,832		1,194		6,638	1978		7/11/2005
Duncan, South Carolina Office & Warehouse Building		10,800		783		10,790		1,615			783		12,405		13,188		2,339		10,849	1984/2001/2007		7/14/2005
Duncan, South Carolina Manufacturing Building		2,700		195		2,682		419			195		3,101		3,296		585		2,711	1984/2001/2007		7/14/2005
Hazelwood, Missouri Office & Warehouse Building		2,347		763		2,309		68			763		2,377		3,140		468		2,672	1977		8/5/2005
Angola, Indiana Industrial Building		638		66		1,075		49			66		1,124		1,190		205		985	1982		9/2/2005
Angola, Indiana Industrial Building		991		132		1,130		51			132		1,181		1,313		318		995	1982		9/2/2005
Rock Falls, Illinois Industrial Building		339		35		1,113		50			35		1,163		1,198		109		1,089	1982		9/2/2005
Newburyport, Massachusetts Industrial Building		6,497		629		6,504		1,847			629		8,351		8,980		1,437		7,543	1994		10/17/2005
Clintonville, Wisconsin Industrial Manufacturing Building		3,183		55		4,717		(0	)		55		4,717		4,772		892		3,880	1992		10/31/2005
Maple Heights, Ohio Industrial Building		10,167		1,609		10,065		1,154			1,609		11,219		12,828		2,417		10,411	1974		12/21/2005
Richmond, Virginia Industrial Building		5,275		736		5,336		36			736		5,372		6,108		1,014		5,094	1972		12/30/2005
Toledo, Ohio Industrial Building		2,847		263		2,812		390			263		3,202		3,465		578		2,887	1979		12/30/2005
South Hadley, Massachusetts Industrial Building		—		471		2,765		10			471		2,775		3,246		488		2,758	1978		2/15/2006
Champaign, Illinois Office Building		1,632		687		2,036		2			687		2,038		2,725		393		2,333	1996		2/21/2006
Champaign, Illinois Office Building		3,199		1,347		3,992		4			1,347		3,996		5,343		770		4,573	1996		2/21/2006
Champaign, Illinois Office Building		2,000		842		2,495		2			842		2,497		3,339		481		2,858	1996		2/21/2006
Champaign, Illinois Office Building		1,828		770		2,281		2			770		2,283		3,053		441		2,612	1996		2/21/2006
Roseville, Minnesota Office Building		17,930		2,588		25,290		413			2,588		25,703		28,291		5,420		22,871	1964		2/21/2006
Burnsville, Minnesota Office Building		11,388		3,511		8,746		(0	)		3,511		8,746		12,257		1,976		10,281	1984		5/10/2006
Menomonee Falls, Wisconsin Industrial Building		6,902		625		6,911		57			625		6,968		7,593		1,181		6,412	1986/2000		6/30/2006
Baytown, Texas Office Building		2,000		221		2,443		0			221		2,443		2,664		468		2,196	1997		7/11/2006
Sterling Heights, Michigan ⁽³⁾Industrial Building		—		2,735		8,606		13			2,735		8,619		11,354		1,387		9,967	1979/1989		9/22/2006
Birmingham, Alabama ⁽³⁾ Industrial Building		—		612		2,326		—			612		2,326		2,938		382		2,556	1961/1980		9/29/2006
Montgomery, Alabama ⁽³⁾Industrial Building		—		222		844		—			222		844		1,066		139		927	1961/1980		9/29/2006
Columbia, Missouri ⁽³⁾Industrial Building		—		146		555		—			146		555		701		91		610	1961/1980		9/29/2006
Mason, Ohio Office Building		4,445		797		6,258		538			797		6,796		7,593		1,201		6,392	2002		1/5/2007
Raleigh, North Carolina Industrial Building		5,328		1,606		5,513		(0	)		1,606		5,513		7,119		852		6,267	1994		2/16/2007
Tulsa, Oklahoma Manufacturing Building		8,272		—		14,057		—			—		14,057		14,057		2,466		11,591	2004		3/1/2007
Hialeah, Florida Industrial Building		—		3,562		6,672		573			3,562		7,245		10,807		1,034		9,773	1956/1992		3/9/2007
Tewksbury, Massachusetts ⁽³⁾Industrial Building		—		1,395		8,893		(0	)		1,395		8,893		10,288		1,389		8,899	1985/1989		5/17/2007
Mason, Ohio Retail Building		4,700		1,201		4,961		0			1,201		4,961		6,162		710		5,452	2007		7/1/2007
Cicero, New York Industrial Building		4,141		299		5,019		0			299		5,019		5,318		685		4,633	2005		9/6/2007
Grand Rapids, Michigan Office Building		6,100		1,629		10,500		15			1,629		10,515		12,144		1,502		10,642	2001		9/28/2007
Bollingbrook, Illinois (3) Industrial Building		—		1,272		5,003		(0	)		1,272		5,003		6,275		719		5,556	2002		9/28/2007
Decatur, Georgia (3) Office Building		—		784		3,245		—			784		3,245		4,029		448		3,582	1989		12/13/2007
Decatur, Georgia (3) Office Building		—		205		848		—			205		848		1,053		117		936	1989		12/13/2007
Decatur, Georgia (3) Office Building		—		257		1,064		—			257		1,064		1,321		147		1,174	1989		12/13/2007
Lawrenceville, Georgia (3) Office Building		—		679		2,809		—			679		2,809		3,488		388		3,100	1989		12/13/2007
Snellville, Georgia (3) Office Building		—		176		729		—			176		729		905		101		804	1989		12/13/2007
Covington, Georgia (3) Office Building		—		232		959		—			232		959		1,191		132		1,058	1989		12/13/2007
Cumming, Georgia Office Building		3,289		738		3,055		2,511			738		5,566		6,304		422		5,881	1989		12/13/2007
Conyers, Georgia (3) Office Building		—		297		1,228		—			297		1,228		1,525		170		1,355	1989		12/13/2007
Reading, Pennsylvania Industrial Building		4,166		491		6,202		—			491		6,202		6,693		785		5,908	2007		1/29/2008
Fridley, Minnesota Office Building		5,320		1,354		8,074		399			1,383		8,444		9,827		1,331		8,496	1985/2006		2/26/2008
Concord Township, Ohio ⁽³⁾ Industrial Building		—		1,796		11,154		(8	)		1,788		11,154		12,942		1,458		11,484	1957/2008		3/31/2008
Pineville, North Carolina Industrial Building		2,422		669		3,028		6			669		3,034		3,703		375		3,328	1985		4/30/2008
Marietta, Ohio Industrial Building		5,910		829		6,607		209			829		6,816		7,645		752		6,893	1992/2007		8/29/2008
Chalfont, Pennsylvania Industrial Building		5,866		1,249		6,420		190			1,249		6,610		7,859		862		6,997	1987		8/29/2008
Orange City, Iowa Office and Warehouse Building		9,983		258		5,861		—			258		5,861		6,119		376		5,743	1990		12/7/2010
Hickory, North Carolina Office Building		6,958		1,163		6,605		—			1,163		6,605		7,768		525		7,243	2008		4/4/2011
Springfield, Missouri Office Building		11,341		1,700		12,038		—			1,700		12,038		13,738		553		13,185	2006		6/20/2011
Boston Heights, Ohio Office Building		2,749		449		3,010		—			449		3,010		3,459		160		3,299	2011		10/20/2011
Parsippany, New Jersey Office Building		7,068		1,696		7,077		—			1,696		7,077		8,773		314		8,459	1984		10/27/2011
Dartmouth, Massachusetts Retail Location		4,256		—		4,236		—			—		4,236		4,236		132		4,104	2011		11/18/2011
Springfield, Missouri Retail Location		1,984		—		2,275		—			—		2,275		2,275		86		2,189	2005		12/13/2011
Pittsburgh, Pennsylvania Office Building		2,897		281		3,205		—			281		3,205		3,486		105		3,381	1968		12/28/2011
Ashburn, Virginia Office Building		7,555		706		7,858		—			706		7,858		8,564		241		8,323	2002		1/25/2012
Ottumwa, Iowa Industrial		4,883		212		5,072		287			212		5,359		5,571		113		5,458	1970		5/30/2012
New Albany, Ohio Industrial		9,661		1,658		8,746		—			1,658		8,746		10,404		188		10,216	2007		6/5/2012
Columbus, Georgia Office		4,712		1,378		4,520		—			1,378		4,520		5,898		98		5,800	2012		6/21/2012
Columbus, Ohio Office		2,979		542		2,453		11			542		2,464		3,006		57		2,949	1981		6/28/2012
Jupiter, Florida Office		10,707		1,160		11,994		—			1,160		11,994		13,154		96		13,058	2011		9/26/2012
Fort Worth, Texas Office		14,145		963		15,647		—			963		15,647		16,610		70		16,540	2005		11/8/2012
Columbia, South Carolina Office		19,000		1,905		20,648		—			1,905		20,648		22,553		98		22,455	2010		11/21/2012

	$	358,290	$	69,107	$	451,323	$	13,323		$	69,126	$	464,627	$	533,753	$	65,730	$	468,023

⁽¹⁾	The aggregate cost for land and building improvements for federal income tax purposes is the same as the total gross cost of land and building improvements.

⁽²⁾	Depreciable life of all buildings is 39 years. Depreciable life of all improvements is the shorter of the useful life of the assets or the life of the respective leases on each building, which range from 5-20 years.

⁽³⁾	These properties were pledged as borrowing base assets under the line of credit.

The following table reconciles the change in the balance of real estate during the years ended December 31, 2012, 2011 and 2010, respectively (in thousands):


	2012		2011			2010
Balance at beginning of period	$	442,521	$	401,017		$	390,754
Additions:
Acquisitions during period		85,462		43,735			8,901
Improvements		5,770		1,164			1,362
Deductions:
Dispositions during period		—		—			—
Purchase price adjustments		—		(3,395	)⁽¹⁾		—

Balance at end of period	$	533,753	$	442,521		$	401,017

⁽¹⁾	Adjustment to Orange City, Iowa property acquired in December 2010 property purchase price. Refer to Note 1 out of period adjustment.

The following table reconciles the change in the balance of accumulated depreciation during the years ended December 31, 2012, 2011 and 2010, respectively (in thousands):


	2012		2011		2010
Balance at beginning of period	$	53,784	$	43,659	$	34,112
Additions during period		11,946		10,125		9,547
Dispositions during period		—		—		—

Balance at end of period	$	65,730	$	53,784	$	43,659

- Definition

The entire disclosure for real estate and accumulated depreciation. This may include a schedule that describes the property and lists the initial cost of land, buildings and improvements, improvements and carrying costs capitalized after acquisition, and the total carrying cost for land, buildings and improvements for each property and in aggregate. The schedule also lists the accumulated depreciation for each property and in aggregate, the date each property was constructed and acquired, the useful life used to calculate depreciation and any encumbrances on the properties. The entity provides a reconciliation of the carrying amount of real estate from the beginning of the period to the end of the period. Any real estate investments that have been written down or reserved against are described, including the basis of the write-down. A material amount of intercompany profit in the total carrying amount of real estate is disclosed. The aggregate cost of all real estate investments for federal income tax purposes is also disclosed.

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