Vice President, Acquisitions & Asset Management
La Mirada and Seville
HOUSTON, Oct. 03, 2016 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE:WSR) (“Whitestone” or the “Company”) today announced that it continues to expand its portfolio in the largest and fastest growing cities in the United States with acquisitions of La Mirada and Seville, two upscale retail centers located in Scottsdale, Arizona. In a recent Forbes article, Scottsdale was ranked third among cities that are winning the battle for information jobs and was cited among the top cities for growth in the information economy. The acquisitions bring the Company’s total holdings in the greater Phoenix metropolitan area to 27 community centered properties containing 2.3 million leasable square feet.
About La Mirada
La Mirada is located in North Scottsdale at Pima Road and Pinnacle Peak Road, with an average household income of $129,000 within a five-mile radius.
La Mirada is located in North Scottsdale, with an average household income of $129,000 within a five-mile radius, and enhances Whitestone’s continued pricing power with concentrated ownership of four properties within a two-mile stretch along Pinnacle Peak Road, and eight properties overall, with a total of 857,000 square feet, within Scottsdale. The 147,209 square foot center is 90.9% occupied and includes tenants such as Walgreens, Starbucks, Mastro’s Steakhouse and Kumon Math & Reading, and is well positioned providing convenience and services to the community at the intersection of Pima and Pinnacle Peak Roads.
Seville is located at Scottsdale Road and East Indian Bend Road, across the intersection from the recently announced $2 billion Ritz-Carlton development.
Seville is part of the famed McCormick Ranch, one of the largest planned communities in Arizona, with an average household income of $97,000 within a five-mile radius. The property is located at Scottsdale Road and East Indian Bend Road, and across the intersection from the recently announced $2 billion Ritz-Carlton development, scheduled to be completed in 2018. Among the merchant mix of the 90,042 square foot, 88.7% leased center, are Starbucks, Beal Bank, Orange Theory Fitness and Ruth’s Chris Steak House.
La Mirada and Seville were acquired with a combined occupancy rate of 90.1% and an aggregate 7.0% in-place cash-on-cash return on the total purchase price. The acquisition is below replacement cost and is accretive to Funds from Operations and Funds from Operations per share. The existing occupancies and potential re-tenanting offer upside to Whitestone’s investment.
The two properties were acquired for a total purchase price of $72,500,000. The purchase was funded using 54% equity and 46% debt from the Company’s unsecured credit facility. The equity portion consisted of the issuance of 621,053 Operating Partnership Units (“OP units”) priced at $19.00 per unit and proceeds from sales of common shares under the Company’s ATM program.
The Company noted that the OP units will be redeemable, on a one-for-one basis, for cash at a value of one Whitestone common share or, at Whitestone’s election, Whitestone common shares, subject to certain restrictions. Like the Company’s common shares, the OP units currently receive an annual dividend of $1.14 per unit, which is paid in monthly increments. This is the second time that Whitestone has used OP units in the funding of an acquisition. In August 2015, the Company acquired Keller Place, and two developable land parcels, using a combination of cash and 120,000 OP units. In that acquisition, the OP units were also priced at $19.00 per unit.
Jim Mastandrea, Chairman and Chief Executive Officer, stated, “We are very pleased to be adding these two upscale properties to our greater Phoenix area portfolio. Both offer value-add potential and are complementary to our 'internet-resistant' Community Centered PropertyTM business model.”
Mr. Mastandrea concluded, “In addition to the properties’ strategic attributes, La Mirada and Seville will be immediately accretive to earnings, add to our cash flow, enhance our market concentration and ability to increase revenue and net operating growth and were funded using OP units priced at a value which we believe more closely aligns with the value of the Company than our current traded stock price.”
Houston, Texas, August 26, 2015 – Whitestone REIT (NYSE: WSR) (“Whitestone” or “the Company”) announced today that it has acquired Quinlan Crossing, its fourth community centered property in the fast-growing and economically-strong Austin market. The well-known Quinlan Crossing retail center, which was acquired for a total of $37.5 million, is ideally located between Lake Austin and Lake Travis at the main entrance of the upscale and affluent Steiner Ranch master-planned community, which is home to The University of Texas Golf Club. The rapidly growing area, which boasts strong demographics that include average household income of $117,000 and a median home value of $443,000, is one of Austin’s most desirable due to its amenities, exemplary schools and its close proximity to the lakes and to major employers.
The Company initially entered Austin in late May with the purchase of Davenport Village and has since expanded its holdings in the city to four properties containing a total of 356,000 square feet. Austin is currently ranked #1 in population growth, is ranked #1 as the “Next Big Boom Town in the U.S” by Forbes Magazine, was ranked as the “Best City of the Decade” by Kiplinger in 2010, has an unemployment rate of only 3.4% and has been dubbed “Silicon Hills” due to its proliferation of high-tech companies.
Quinlan Crossing, the trade area’s dominant shopping destination, is anchored by a Randalls grocery store and includes Coffee Bean & Tea Leaf, Massage Envy Spa, Menchie’s Yogurt and Zacks American Bistro. The community centered property is reflective of Whitestone’s service-based, neighborhood necessities focus, as its complementary mix of tenants are dedicated to meeting the daily needs of the over 4,000 Steiner Ranch households.
Houston, Texas, August 31, 2015 – Whitestone REIT (NYSE: WSR) (“Whitestone” or “the Company”) today announced the acquisition of Keller Place, increasing its Community Centered PropertiesTM in Dallas/Fort Worth to seven and to sixty-nine overall for the Company. The purchase of Keller Place includes two developable land parcels, valued at $2.3 million, which provide the Company with significant value-add potential. Keller Place was acquired for a total purchase price of $14.3 million, including the value of the developable land parcels, and will enhance Whitestone’s presence in the Dallas/Fort Worth Metroplex, the ninth largest metropolitan area in the United States. The marquee property is anchored by a Kroger Signature superstore serving the affluent Keller community with an average household income of over $101,000.