HOUSTON--(BUSINESS WIRE)--Whitestone REIT (NYSE-AMEX: 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 purchased Gilbert Tuscany Village out of foreclosure from a private lender for $5 million, or $101.18 per leasable square foot. The amount paid is significantly below the Center’s estimated replacement cost. The 49,415 square foot Class A Community Center is located in Gilbert, Arizona – one of Phoenix’s fastest growing Southeast Valley suburbs and rated among the nation’s “Top Places to Live & Learn1.” In addition, Fresh & Easy, a major grocer, has a 14,750 square foot building adjacent to the Center. Completed in 2009 and featuring Old World Tuscan architecture with outdoor fountains, the Center is anchored by Rancho de Tia Rosa, an award-winning restaurant known for serving the “best Mexican food2“ in Phoenix.
Gilbert Tuscany Village is surrounded by densely populated, high-end residential developments and is just over one mile from Banner Gateway Medical Center, a 60-acre medical complex, the owner of which is partnering with MD Anderson to add a new 120,000 square foot Cancer Outpatient Center (scheduled to open in September 2011).
“We are pleased to extend Whitestone’s Phoenix area footprint into the growing Southeast Valley area. Gilbert Tuscany Village was initially 57% pre-leased during construction, demonstrating the tenant demand generated as the developers spared no expense in construction, estimated at a cost exceeding $16 million, and their magnificent architectural design. While the current occupancy is less than half of the pre-leasing rate, we expect, from our preliminary discussions with prospective tenants and our ability to fund tenant build-out, to increase the occupancy and the value of this asset,” said James C. Mastandrea, Whitestone’s Chairman and Chief Executive Officer.
About Whitestone REIT
Whitestone REIT (NYSE-AMEX: 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 service offerings including medical, education, and casual dining. The largest of its approximately 800 tenants comprises less than 2% of its 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 SEC filings, news releases, financial reports and investor newsletters.
Whitestone REIT Acquisitions: Interested parties should contact Bradford Johnson, Whitestone REIT Director of Acquisitions, via email: bjohnson@whitestonereit.com or phone: 713.435.2208.
Forward-Looking Statements
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.
Sources: 1GreatSchools.org; 2Ranking Arizona – The Best of Arizona Business 2011 and Phoenix Magazine feature article April 2008.
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