Gladstone Acquires $21M MI Industrial Portfolio
The two buildings comprise a total of nearly 220,000 square feet and are 100 percent leased. The properties were purchased through an UPREIT transaction.
By IvyLee Rosario
Gladstone Commercial Corp. has acquired two industrial buildings in the Detroit submarkets of Auburn Hills and Sterling Heights for $21.3 million. The assets were purchased through an UPREIT transaction that was inclusive of assumed debt, at a 7.5 percent cap rate.
Totaling 218,703 square feet, the portfolio is 100 percent leased, with an average term of 10.5 years. The building in Auburn Hills comprises 144,400 square feet and is occupied by Dana Driveshaft Manufacturing LLC, which currently has a 10.2-year lease. The company is a subsidiary of Dana Inc. The asset in Sterling Heights comprises 74,303 square feet and is leased for 10.9 years by TransForm Automotive LLC, a subsidiary of Mean Industries Inc.
“This portfolio acquisition expands our industrial presence in the Detroit Area, where we now own five industrial assets totaling more than 900,000 square feet,” said Matt Tucker, senior managing director of Gladstone Commercial, in a prepared statement. “The Detroit Area industrial market fundamentals are favorable, with a vacancy rate below 5 percent, and long-term trends of positive absorption and rent growth. This investment should provide accretive, long-term returns to our investors, while increasing our industrial concentration and weighted average lease term for the Gladstone Commercial portfolio.”
In September, the company acquired an industrial property in Delaware, Ohio for $8.3 million, which was 100 percent occupied by Midwest Acoust-A-Fiber.
You must be logged in to post a comment.