Gladstone Commercial Corporation Announces Sale of Georgia Medical Office Portfolio

Gladstone Commercial Corporation (Nasdaq: GOOD) announced the sale of two medical office properties in the Atlanta MSA. The properties, leased to Northside Hospital, total 26,331 square feet and were sold at a cap rate of 5.97% on August 7, 2024. This transaction yielded a leveraged internal rate of return of approximately 13.2% for Gladstone.

Originally acquired in 2007 as part of an 8-property portfolio, the sale aligns with Gladstone’s strategy to increase its industrial sector investments. Todd Alan McDonald, Senior Vice President, emphasized the plan to recycle capital into the industrial sector to enhance yield.

Both Todd Alan McDonald and Perry Finney, Senior Vice Presidents, acknowledged the long-term partnership with Northside Hospital and expressed satisfaction with the transaction outcome. Buzz Cooper, President of Gladstone, reiterated that the sale supports their strategic shift towards industrial assets.