Gladstone Commercial Corporation Announces Recent Leasing Success in the Twin Cities

MCLEAN, Va., May 19, 2020 (GLOBE NEWSWIRE) -- Gladstone Commercial Corporation  (Nasdaq: GOOD) (“Gladstone Commercial”) announced today that Benedictine Health System (“BHS”) has moved its headquarters into and its 10-year lease has commenced at one of Gladstone Commercial’s properties, located at 6499 University Avenue, Fridley, Minnesota, a suburb of Minneapolis.  Construction of the tenant and building improvements were completed ahead of schedule in less than 90 days and below budgeted cost. Gladstone Commercial worked with Julie Kimble of Kimble Co. to manage the buildout project, with Welsh Construction acting as general contractor.

BHS is one of the largest Catholic senior care organizations in the United States, with elder care communities across the Midwest, spanning from adult day services and care at home to memory care and assisted living.  BHS now leases 35,757 square feet, or approximately half of the 72,428 square foot office building.  More than $1 million of improvements have been made to the property, including upgrading the large atrium, kitchen area and entertainment space which are open to all tenants of the building.

Additionally, Gladstone Commercial announced that it has renewed its lease with Bosch Service Solutions (“Bosch”) at its office property at 12000 Portland in Burnsville, MN, extending the lease through January 2023.  Bosch occupies approximately 5,600 square feet through this lease.  No tenant improvements were required for this renewal.

“We are proud to unveil the exciting repositioning of 6499 University while adding a great tenant to the Gladstone roster” said Matt Tucker, Senior Managing Director and Northeast/Midwest Regional Head for Gladstone Commercial.  “New tenants in the building will find an unusually high level of natural light, great access and top quality improvements.  Additionally, we are happy to announce the renewal of the lease with Bosch at our Burnsville property.  It is a good reflection of our quality properties that our leasing activity has continued through this environment.”

“It is remarkable that a property as terrific as 6499 University Avenue can be offered so close to the city – just minutes to downtown with abundant parking and at a discount to downtown rental rates.  BHS was introduced to the opportunity by Gerry Driessen of CBRE and immediately recognized the unparalleled opportunity it represented for them. Our leasing team from Kimble Co. introduced their project management team, who brought the project in ahead of schedule and well under budget working with Genesis Architecture and Welsh Construction,” said Karen Priesman, Senior Asset Manager for Gladstone Commercial.  “We got the trifecta – a fabulous new partner in BHS, a refreshed competitive property, and outstanding delivery of the construction.  Now our CBRE management team will work hard to ensure BHS thrives in their new home. CBRE also manages our Burnsville property.  The renewal by Bosch reflects the great service tenants receive at our properties.” 

About Gladstone Commercial (Nasdaq: GOOD)

Gladstone Commercial is a real estate investment trust focused on acquiring, owning, and operating net leased industrial and office properties across the United States. As of March 31, 2020, Gladstone Commercial’s real estate portfolio consisted of 122 properties located in 28 states, totaling approximately 15.1 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 Gladstone Commercial’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, 2019, as filed with the SEC on February 12, 2020 and certain other filings we make with the SEC.  Gladstone Commercial 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.

For Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.gladstonecompanies.com.

SOURCE: Gladstone Commercial Corporation

Released May 19, 2020