Gladstone Commercial Corp. Acquires Fully Leased OH Property
The industrial asset has been serving as Midwest Acoust-A-Fiber’s headquarters since its completion in 1990. The company, which is also the sole tenant, has signed a lease extension.
By Timea Matyas
759 Pittsburgh Drive
Following the $14.3 million purchase of a 127,444-square-foot property from Graham & Co. in Vance, Ala., Gladstone Commercial Corp. has acquired an industrial property in Delaware, Ohio for $8.3 million, with an initial capitalization rate for the acquisition of 7.68 percent, and an average (GAAP) capitalization rate of 9.18 percent.
According to public records, Metal Stars II LLC acquired the 14.7-acre property in 2016 for $3.3 million.
At the time of the transaction, the asset was 100 percent occupied by Midwest Acoust-A-Fiber, a designer and manufacturer of thermal and acoustical engineering products. The company has been the sole tenant since the facility’s construction in 1990, and has expanded twice, once in 2016 and again in 2018. Simultaneous with closing, the long-time tenant executed a lease extension, bringing the remaining term of the absolute-NNN lease to 15 years.
Located at 759 Pittsburgh Drive, Midwest Acoust-A-Fiber’s headquarters is 3 miles southwest of downtown Delaware and 25 miles north of Columbus. The asset is within a mile of the Delaware Municipal Airport and very close to State Route 42.
“This quality industrial acquisition expands our presence in the target market of Columbus, Ohio, as well as our national industrial portfolio. The property is well located in the path of growth with exceptional infrastructure access, is mission critical for the tenant, and should provide our investors with long term steady returns,” said Matt Tucker, Gladstone Commercial Corp.’s senior managing director of the Northeast/Midwest region, in a prepared statement.
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