Deal-Tracker: Gladstone Announces Closing of Loan

PHOENIX—In this week’s Deal-Tracker, Gladstone Commercial Corporation reported that it closed a $5.6 million second mortgage development loan for the construction of an 81,371 square foot, build-to-suit transitional care facility located on a major hospital campus in Phoenix.

Construction is scheduled to be completed in approximately twelve months and the company will earn 9.0% interest, paid currently in cash, on the loan during construction and through maturity. Prior to completion of the facility, the company will be granted a right of first offer to purchase the property. If the company does not purchase the property at completion, it will receive a priority exit fee sufficient to earn an internal rate of return of 22% when the development loan is repaid upon sale of the property.