HOUSTON--(BUSINESS WIRE)--Whitestone REIT (NYSE: WSR – “Whitestone”), a fully integrated real estate company that owns, operates and re-develops Community Centered PropertiesTM, which are visibly located properties in established or developing culturally diverse neighborhoods, announced today that it has closed on the off-market purchase of The Shops at Pecos Ranch, a 78,767 square foot 100% leased Community Center in Chandler, Arizona, for $18.95 million in an all-cash transaction. The Center has in-place cash flow of approximately $1.6 million, or 8.4% of the purchase price.
“The Shops at Pecos Ranch, a class-A stabilized Community Center completed in 2010, is located in a densely populated trade area serving Chandler, a Phoenix suburb in the growing Southeast Valley. Tenants housed on the 10-acre site, at the intersection of Dobson and Germann Roads, serve the surrounding Pecos Ranch and Vineyards neighborhoods. Traffic is enhanced by the property’s one-mile proximity to Intel Corporation’s nearby new corporate 682-acre campus with approximately 11,000 employees, as well as the developing office submarket surrounding the coming Intel semiconductor manufacturing plant projected for completion in 2013. Additionally, because The Shops at Pecos Ranch is nearby Whitestone’s other Southeast Valley Centers, Village Square at Dana Park and Gilbert Tuscany Village, we expect to benefit from enhanced economies of scale through our in-house property management and leasing team,” said James C. Mastandrea, Whitestone’s Chairman and Chief Executive Officer. “The tenants include four popular restaurants with individual outdoor dining patios, that have each established a lunch crowd pulling from nearby employers, and draw additional traffic for evening and weekend business from the surrounding neighborhoods. Tenant mix also includes other service tenants including salons, medical and educational tenants – our small space tenant mix formula for our Community Centered property business model.” Mastandrea added, “The depth and breadth of Whitestone’s team of associates enabled the acquisition of The Shops at Pecos Ranch to be accomplished at an accelerated pace from contract to execution, through due diligence to closing in less than 30 days. Pecos Ranch was in Whitestone’s pipeline for one year.”
Whitestone now owns over 1.2 million square feet of lease space in the greater Phoenix area in 15 Community Centers and future development land parcels, strategically located in high traffic neighborhoods, including The Shops at Pecos Ranch. The other Centers include Ahwatukee Plaza, The Citadel, Desert Canyon, Fountain Square, Gilbert Tuscany Village, MarketPlace at Central, Paradise Plaza, Pima Norte, The Pinnacle of Scottsdale, The Shops at Pinnacle Peak, Terravita Marketplace and Village Park at Dana Square as well as future development land parcels at The Pinnacle of Scottsdale and at Village Park at Dana Square. All purchases were off market and priced at a discount to current replacement cost and have a value-add component. Each of these Community Centers is in a stabilized neighborhood with strong demographics, and provides essential services to support local communities.
About The Shops at Pecos Ranch
The Shops at Pecos Ranch is on the northwest corner of Germann Road at Dobson Road on a busy intersection with a traffic count of over 27,000 cars per day. The tenant mix targeting urban families is typical of Whitestone’s Driving Traffic/Driving ValueTM approach with a cohesive cross-referral service business base. Currently 100% leased with 19 tenants, the Center is home to Crowded House, the largest tenant, with 16,133 square feet of lease space, and Phoenix Children’s Academy, with 10,685 square feet of space. Other small-space tenants with 5,000 square feet or less, include a mix of medical/health care and convenience service providers ranging from chiropractitioners, dry cleaner, yoga and fitness studios to tax preparation. A variety of popular casual dining venues range from Italian, Chinese to Mexican, as well as breakfast, pizza and sandwich offerings.
About Whitestone REIT
Whitestone REIT (NYSE:WSR) is a fully integrated real estate company that owns, operates and re-develops Community Centered PropertiesTM, which are visibly located properties in established or developing culturally diverse neighborhoods. Whitestone focuses on value-creation in its Centers, as it markets, leases and manages its Centers to match tenants with the shared needs of surrounding neighborhoods. Operations are structured for providing cost-effective service to local service-oriented smaller space tenants (less than 3,000 square feet). Whitestone has a diversified tenant base concentrated on consumer service including medical, education, and casual dining. The Company has nearly 1,100 tenants, the largest of which comprises less than 1.5% of Whitestone’s rental revenues. Headquartered in Houston, Texas and founded in 1998, the Company is internally managed with a portfolio of commercial properties in Texas, Arizona, and Illinois. For additional information about the Company, please visit www.whitestonereit.com. The Investor Relations section of the Company's website has links to Whitestone’s filings with the Securities and Exchange Commission, news releases, financial reports and investor newsletters.
Whitestone REIT Acquisitions: Whitestone REIT purchases Community Centered Properties and has worked with banks and financially distressed commercial property owners with pending loan maturities, as well as their tax advisors, estate planners and lenders to close $190 million in Community Centered Properties in the past 24 months.
Forward-Looking Statements: Statements included herein that state Whitestone’s or management's intentions, hopes, beliefs, expectations or predictions of the future are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, which by their nature, involve known and unknown risks and uncertainties. Whitestone’s actual results, performance or achievements could differ materially from those expressed or implied by these statements. Reference is made to Whitestone’s regulatory filings with the Securities and Exchange Commission for information or factors that may impact Whitestone’s performance.