Gladstone Commercial Corporation Completes $1.0 Million PACE-Funded Financing for Energy Saving Improvements at Akron, OH Property
MCLEAN, Va., April 08, 2020 (GLOBE NEWSWIRE) -- Gladstone Commercial Corporation (Nasdaq: GOOD) (“Gladstone Commercial”) announced that it has closed a $1.0 Million Property Assessed Clean Energy (“PACE”) financing for its 260 Springside property in Akron, OH. The rate on the financing is 3.5%. The 84,000 SF single-story multi-tenant office building is 74% leased to Flexsys America L.P. (a subsidiary of Eastman Chemical Company) providing lab and office space for its Tire Additives Technology Center of Excellence. The financings cover 100% of the costs to replace a large portion of the building’s HVAC equipment including conversion from electric to gas for many units, to modernize fume hood controls, to install energy efficient interior lighting, and to tie all of it into a robust energy management system installed in 2019 allowing for continued refinement of energy saving strategies over the life of the equipment. Submeters will also be installed allowing for separate metering of tenants’ utility usage. In addition, the hood improvements will improve safety in the labs. When the work is complete, it is projected that the energy savings will exceed all of the financing costs making the investment cashflow positive for the tenants with no out of pocket cost for Gladstone Commercial.
“We were happy to partner with Eastman to allow their hoods to be modernized in tandem with our base building work. This is a hallmark of the Gladstone philosophy – strong partnerships with our tenants allowing them to improve their production in a very cost effective manner while also benefiting the environment” said Karen Priesman, Senior Asset Manager for the Midwest Region for Gladstone Commercial. “Preliminary assessments indicate that these improvements will reduce the property’s annual utility expenses by 30% and eliminate more than 330 metric tons of carbon dioxide emissions. Using the PACE program, needed equipment replacements and upgrades will be made without having to utilize capital or standard debt products”.
“Gladstone works continuously to find creative solutions to capital needs at our properties as well as our tenants’ occupancy needs. Through this process we were able to assist our tenant in maximizing their cost savings while increasing the energy efficiency and sustainability of our property and portfolio as a whole without incurring any capital expenditures” stated Buzz Cooper, Senior Managing Director and head of the South Central Region for Gladstone Commercial.
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 December 31, 2019, Gladstone Commercial’s real estate portfolio consisted of 118 properties located in 28 states, totaling approximately 14.2 million square feet. For additional information please visit www.gladstonecommercial.com.
For Broker Submittals:
|Buzz Cooper||Matt Tucker|
|Senior Managing Director||Senior Managing Director|
|(703) 287-5815||(703) 287-5830|
Investor or Media Inquiries:
|President – Gladstone Commercial Corporation|
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.
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SOURCE: Gladstone Commercial Corporation
Released April 8, 2020