HOUSTON--(BUSINESS WIRE)--Whitestone REIT (NYSE: WSR – “Whitestone”), a fully integrated real estate company that owns, operates and re-develops Community Centered PropertiesTM, announced today that it has completed the purchase of Fountain Hills Plaza, a Class-A, neighborhood retail center in Fountain Hills, Arizona for $20.5 million. The 111,289 square foot, grocery and hardware store dual-anchored center serves the town of Fountain Hills, Arizona, an affluent master-planned community of 10,000 households.
Whitestone purchased Fountain Hills Plaza in an all cash transaction for $20.5 million. The center is 87% occupied and was purchased with in-place cash flow of approximately 8% of the purchase price.
James C. Mastandrea, Whitestone’s Chairman and Chief Executive Officer, said, “Fountain Hills Plaza is a well-located Class A Community Center that has a proven draw of national brand name tenants who pull additional customer traffic to the existing tenancy. The purchase is a value-add opportunity and includes the adjacent approximate one acre development-ready pad site that can accommodate an additional 7,000 square feet of multi-tenant retail space. The center and adjacent land parcel were purchased at a combined price of $185 per built leasable square foot, which is considerably below replacement cost.” Mastandrea continued, “Our purchase of Fountain Hills Plaza embodies Whitestone’s acquisition strategy of purchasing off-market properties with significant value-add potential.”
Whitestone now owns approximately 1.6 million square feet of gross leasable area in the greater Phoenix area in 20 Community Centers, which includes four land parcels that are available for future development. All are strategically located in stabilized neighborhoods with strong demographics, and provide essential services to support local communities. These centers include The Shops at Pecos Ranch, Ahwatukee Plaza, The Citadel, Desert Canyon, Fountain Square, Gilbert Tuscany Village, Marketplace at Central, Paradise Plaza, Pima Norte, Mercado at Scottsdale Ranch, The Pinnacle of Scottsdale, The Shops at Pinnacle Peak, Terravita Marketplace, Village Square at Dana Park, Anthem Marketplace and Fountain Hills Plaza. The four land parcels available for future development are located adjacent to Whitestone’s Pinnacle of Scottsdale, Village Square at Dana Park, Anthem Marketplace and Fountain Hills Plaza community centers. All purchases were off-market and priced at a discount to current replacement cost with a value-add component.
Whitestone REIT purchases Community Centered PropertiesTM 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 more than $175 million in Community Centered Properties over the last 12 months.
About Whitestone REIT
Whitestone REIT (NYSE: WSR) is a fully integrated real estate investment trust that owns, operates and redevelops Community Centered PropertiesTM. Whitestone focuses on value creation in its community centers, concentrating on local service-oriented, smaller space tenants (less than 3,000 square feet). Whitestone has a diversified tenant base concentrated on service offerings including medical, education, casual dining, and convenience services. The largest of its approximately 1,200 tenants comprised less than 1.6% of its annualized base rental revenues as of June 30, 2013. 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
Statements included herein that state the Company'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. The Company's actual results, performance or achievements could differ materially from those expressed or implied by these statements. Reference is made to the Company's regulatory filings with the Securities and Exchange Commission for information or factors that may impact the Company's performance.