The Gladstone Companies' goal is to acquire NNN real estate from Third Party Sellers and Owner Occupants.
PROPERTY TYPE: Triple net lease (NNN) office, industrial, manufacturing and medical buildings
TENANT PROFILE: Private companies and Non-Investment-Grade public companies
ACQUISITION SIZE: $5 to $50 million (per asset)
CAP RATES: 7%-10% based on tenant credit worthiness, real estate quality, market dynamics and the primary term of the lease
LOCATION: Continental U.S.
The Gladstone Companies have several advantages to offer clients in Real Estate financing solutions. In Sponsor-owned, private company triple net lease real estate transactions, the underwriting of the tenant is the most challenging piece of the puzzle. Gladstone has a unique advantage over its competitors in this area.
The Gladstone Companies can leverage our extensive experience in middle-market corporate cash-flow lending and private equity investing to quickly underwrite the strength of any private tenant. Our edge in tenant underwriting and private equity knowledge gives Sponsors and Companies confidence in Gladstone's ability to close quickly on Sale Leaseback transactions. Unlike many of our competitors, Gladstone is an all cash buyer offering sellers no financing contingencies.
Sale Leasebacks de-leverage balance sheets, improve credit statistics (off balance sheet financing) and
increase equity value.
Lower cost sale leaseback cap rates improve cash flow vs. alternative mezzanine financing.
Gladstone has proprietary “sponsor-friendly lease documents” which allow for seamless exits from portfolio companies.
Absolute triple net lease: Companies maintain complete control of real estate assets.
No Financing Contingencies. All cash purchase.
Real Estate Investments and Mortgages
The Gladstone Companies' real estate group leases business real estate and provides mortgage loans to private, middle-market companies. We focus on buy and hold investments in triple-net (NNN) real estate, purchased from owner occupants and third-party sellers. A typical Gladstone tenant is a US based private company or non-investment grade public company with a strong operating history.
With deep operational knowledge and diverse financing expertise, Gladstone assists businesses in financing real estate assets in several ways:
Acquire business real estate and lease it to the company on a long term basis.
Purchase real estate already owned by a business and lease it back to the company to provide liquidity from equity in the real estate
Provide a long-term mortgage loan on the real estate owned by the business.
The Gladstone Advantage
In private and public non-investment grade NNN real estate transactions, the underwriting of the tenant is the most challenging piece of the puzzle. Unfortunately, the tenant credit analysis is what usually creates complexity and holds up the real estate transaction. Gladstone has a unique advantage over its competitors in this area: Our team has the ability to leverage the Gladstone Companies' extensive experience in middle-market corporate cash-flow lending and private equity investing to quickly underwrite the strength of any private or non-investment grade public middle-market tenant. Our edge in tenant underwriting gives the Seller confidence in Gladstone's ability to close quickly on any net lease real estate transaction.
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