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 purchased Market Street at DC Ranch in Scottsdale, Arizona for $37.4 million, or $156 per square foot. Market Street primarily serves the DC Ranch neighborhood, one of Scottsdale’s signature master planned communities, anchored by Safeway grocery, at the cross roads of Pima, and Thompson Peak, just north of Highway 101. The 241,280-square-foot property is currently 80% occupied and includes land to build and lease another 35,000 square feet.
The addition of Market Street to Whitestone’s Arizona portfolio marks its 21st acquisition in the greater Phoenix metropolitan area, and increases its footprint to over 1.8 million square feet of gross leasable space. Whitestone has acquired three properties, Fountain Hills ($20.5 Million), Corporate Park Woodland II ($2.8 million) and Market Street ($37.4 million) totaling $60.7 million since its equity raise in October. Market Street is expected to be immediately accretive to Whitestone’s earnings, contributing $0.06 to annual Funds From Operation (FFO) per share.
The Seller, DMB developed Market Street as a part of the overall Master Planned Community to provide the residents of DC Ranch and Silverleaf a dynamic mix of local services and a place to dine, shop and work. In addition, Market Street has evolved into a popular destination to bring the community together by hosting major events including the Tour De Scottsdale and the Run for Ryan House.
James C. Mastandrea, Whitestone’s Chairman and Chief Executive Officer, said, “We are pleased to add Market Street to our portfolio of class 'A' Community Centered PropertiesTM in the Phoenix area, and proud to follow in the footsteps of DMB towards the completion and lease-up of the property. Our business model provides an opportunity for our tenants to successfully and profitably build their businesses by meeting the needs of residents in the surrounding communities, which in turn adds value to the property.”
Mastandrea added, “While Market Street was not on the market for sale, we began discussing a possible purchase directly with DMB in early summer. We learned that the principals of DMB and Whitestone’s principals shared similar philosophies with regard to the success related to investing ‘reputational equity’ in a property, community, and/or business for it to be profitable, and reached a purchase/sale agreement. During the due-diligence period, we gained a much greater appreciation for DMB’s concept, design, and implementation of their Market Street development and the overall development of DC Ranch.” Mastandrea concluded, “Our team is excited to be directly involved in Market Street and build on its top-tier tenant base which includes Safeway, Wells Fargo Bank, Fleming’s Steak House, Grimaldi’s Pizza, MidFirst Bank, McCormick & Co., and Edward Jones.”
Michael Burke, Vice President of DMB Commercial said, “Market Street will continue to flourish under Whitestone’s ownership. This transaction is a powerful opportunity for us to sell a successful property to a company with specific expertise in expanding similarly situated neighborhood centers,”
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 September 30, 2013. Founded in 1998, the Company is internally managed with a portfolio of 59 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 contains filings made with the Securities and Exchange Commission, news releases and financial reports.
DMB, an Arizona-based real estate company, creates enduring places that capitalize on location and climate, shaping life for generations. For nearly thirty years, DMB has earned a national reputation for creating some of the most iconic communities in the West, DC Ranch in Scottsdale and Verrado® in Buckeye, just to name a few. DMB strives to achieve enduring business success by creating extraordinary new environments that enrich people’s lives, are appreciated and rewarded in the market and have a positive impact on the larger community of which they are part. For more information, visit www.dmbinc.com.
DMB Commercial specializes in strategically shaping and developing properties within DMB’s portfolio of planned communities featuring retail, office, hospitality and other mixed-use components. Properties include Canyon Village, DC Ranch Crossing, and Market Street (all within DC Ranch in Scottsdale, AZ), Centerpoint on Mill (Tempe, AZ), Eastmark (Mesa, AZ), The Shops at Kukui’ula, (Kauai, HI), Main Street at Verrado, (Buckeye, AZ), and One Scottsdale (Scottsdale, AZ).
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.