Business Context and Reporting Period
This Form 8-K Current Report was filed by Gladstone Commercial Corporation on August 5, 2004. The filing discloses the acquisition of two commercial warehouse properties through its operating partnership, Gladstone Commercial Limited Partnership.
Key Financial Metrics
- Acquisition Cost: $10.2 million in cash (including transaction costs).
- Properties Acquired:
- 290,000 square foot warehouse in Snyder Township, Pennsylvania ("Rt. 219").
- 154,000 square foot warehouse in Lexington, North Carolina ("9698 Old US Hwy. 52").
- Occupancy Status: Both properties were fully occupied at the time of purchase under assigned leases.
- Funding Source: Proceeds from the Company's initial public offering in 2003.
Material Changes
The Company expanded its real estate portfolio by acquiring two single-tenant facilities from a single seller. The filing does not provide comparative financial data for prior periods as this is a transaction-specific report rather than a periodic financial statement.
Outlook and Risks
The filing does not contain forward-looking guidance, management commentary on future strategy, or specific risk factors beyond the disclosure of the transaction itself. The transaction was funded entirely with existing cash proceeds, indicating no new debt issuance for this specific acquisition.
Investor Verification Checklist
- Verify the specific lease terms and expiration dates for the assigned leases on both properties.
- Confirm the remaining balance of cash proceeds from the 2003 IPO available for future acquisitions.
- Review the creditworthiness of the single tenants occupying the newly acquired facilities.
- Assess the impact of the $10.2 million cash outflow on the Company's overall liquidity position.