Recent Transactions

Contact

Bradford Johnson
Vice President, Acquisitions & Asset Management
Phone: 713.435.2208
Email: bjohnson@whitestonereit.com


BLVD Place

Houston, TX

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HOUSTON, May 30, 2017 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE:WSR) (“Whitestone” or the “Company”) today announced the completion of the acquisition of BLVD Place, a 216,944-urban mixed use center in the Galleria/Uptown area of Houston, Texas, a true “live-work-shop-play” destination of international renown. BLVD Place is Whitestone’s 28th property in the Houston MSA.

BLVD Place is 99.2% occupied and anchored by a diverse mix of credit tenants such as Whole Foods Market, Frost Bank, and Verizon that serve as destination drivers for the center, drawing a steady stream of visitors engaging in a wide variety of commercial activities at the property. Included in the purchase of BLVD Place is approximately 1.4 acres of developable land that will give Whitestone the ability to build an estimated 137,000 square feet of additional leasable space. The Company currently intends to develop a six-story, mixed-use building on the land which, based on current plans, will include approximately 46,000 square feet of retail space on the first two floors and approximately 91,000 square feet of office space on the top four floors.

BLVD Place is centrally located in the heart of Uptown Houston (“Uptown”), home to more than 2,000 companies and one of the largest business districts in the United States, ranking 15th nationally, and comparable to the CBD’s of Pittsburgh and Denver. Uptown has impressive density with an estimated 500,000 residents living in a five-mile radius, estimated to grow by 7.6% to 537,000 by 2022, with an average household income within the five-mile radius of $124,000.

Houston is a dynamic and diversified metro area, adding more jobs over the past 15 years than any other U.S. metro. Located just 6 miles from BLVD Place is the Texas Medical Center, the largest life sciences destination in the world, with over 56 member institutions (including 21 hospitals). Houston is home to 26 Fortune 500 and 55 Fortune 1000 companies, ranking it third in the nation.

About BLVD Place Tenants

  • Whole Foods Market – the world’s leading natural and organic supermarket and America’s first national certified grocer. www.wholefoodsmarket.com
  • Frost Bank – founded in 1868, in Texas, it has $30 Billion in assets and BLVD place is the Houston headquarters. www.frostbank.com
  • True Food Kitchen and North Italia – founded by Sam Fox, Fox Restaurant Concepts are one of the fastest growing hospitality companies in the country. True Food Kitchen was developed with Dr. Andrew Weil and North Italia is a modern take on traditional Italian cooking. www.foxrc.com
  • Regus Workspaces – the global leader in providing modern, flexible workspace with 2,600 locations in 106 countries. www.regus.com
  • Newmark Grubb Knight Frank – one of the world's leading commercial real estate advisory firms. www.ngkf.com
  • Other tenants include Pinkberry, Elaine Turner, The Eye Gallery, Laura Rathe Fine Art, Peska Seafood & Steaks, Soza Sushi, The Boardroom, Posh Salon, Façade, Rise Soufflé & Wine Bar, Sakowitz Furs, Paloma, Luxington Boutique and Virage Capital Management.

About the BLVD Place Development

BLVD Place was developed and owned by a partnership between Houston-based Wulfe & Co. and Bailard, Inc. of San Francisco. The mixed-use development took place in several phases over the past 13 years. Wulfe & Co. is a leading full service real estate firm specializing in retail development, management, and leasing. Bailard, Inc. is a highly-regarded wealth management firm founded in 1969 and currently managing over $3.5 Billion in assets for a variety of individual and institutional investors, both domestic and international. BLVD Place was conceptualized nearly 15 years ago by Ed Wulfe, Chairman & CEO, and Bob Sellingsloh, President, who together envisioned a dynamic mixed-use development on prestigious Post Oak Boulevard featuring shopping, dining and office uses adjacent to high-rise residences. The Wulfe-Bailard entity was represented in the sale of BLVD Place by Rusty Tamlyn, Matt Kafka, and Trent Agnew of HFF in Houston. HFF, with 23 offices nationwide, is a leading provider of commercial real estate and capital markets services to the global commercial real estate industry including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing.

The project, designed by José Palacios with AECOM and SOM in Los Angeles, makes an elegant and architecturally powerful statement. The development emphasizes a walkable environment that connects exciting and unique restaurants, shopping and office space featuring floor to ceiling glass, with a floor plan allowing for large corporate and boutique office users. In addition, the unique design allows the retail and office space to conceal over 1,250 parking spaces from public view.

Whitestone REIT’s Chairman and CEO, James C. Mastandrea commented, “Ed Wulfe, one of the premier developers in the country, created and developed an award-winning and premier property in the heart of a dynamic upscale marketplace with superb demographics and demand drivers. With the additional upside of the remaining developable land, BLVD place will continue to epitomize the best-in-class mixed use lifestyle center offering the ultimate urban experience.” Mr. Mastandrea concluded, “The property fits perfectly with Whitestone REIT’s E-commerce resistant Community Centered business model and our track record of, and commitment to, driving shareholder value.”


Eldorado Plaza

McKinney, TX

HOUSTON, May 09, 2017 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE:WSR) (“Whitestone” or the “Company”) today announced the acquisition of Eldorado Plaza, a 221,577 square foot, Trader Joe’s anchored shopping center in McKinney, Texas. The center is 97% leased and located on I-75, the primary north arterial route from Dallas, at the north end of the Dallas “Platinum Corridor.”

The Neighborhood

McKinney, Texas, per Forbes July, 2016 article, The Explosive Northern Growth of Metro Dallas is one of “two of the nation’s 15 fastest-growing cities…Frisco and McKinney.” In the “Platinum Corridor,” the north suburban subset of Dallas, McKinney is surrounded by powerful economic drivers including the new Toyota US Headquarters, Emerson Electronics, Google, Amazon, Liberty Mutual and State Farm.

An estimated 191,000 people live within the five-mile radius of Eldorado Plaza, and the population is estimated to grow by 11.6% to 213,600 by 2022. The average household income of the population within the five-mile radius of Eldorado Plaza is $124,000 and the unemployment rate is 2.8%. Eldorado Plaza is well located to serve the needs of the local community and those along I-75 with a 124,000 vehicle count per day.

About Eldorado Plaza

Anchored by Trader Joe’s, Starbucks, recently added Henderson Tap house, Christina’s Mexican Restaurant, and Bed, Bath and Beyond, Eldorado Plaza also is home to Selerix, a software company serving the insurance industry.

On 22 acres, the center has redevelopment opportunities as well as releasing space for upside opportunities to meet the growing affluent surrounding neighborhood needs. The acquisition also includes an option to purchase an additional 1.86 acres of developable land that will give Whitestone the ability to build an estimated 24,000 square feet of additional leasable space, based on current plans.

“The investment of this high quality Class A center, in a great location with strong demographics, will expand our retail leasable square feet in the Dallas market by 65%, highlighting our ability to efficiently scale our enterprise-level and market-level platforms,” said James C. Mastandrea, Whitestone’s Chairman and Chief Executive Officer.

Mr. Mastandrea added, “The center has a stable cash flow, anchored by a well-balanced mix of grocery, dining, services and specialty retail catering to growing affluent families, and upside from future development.” Mr. Mastandrea concluded, “This acquisition demonstrates our ability to continue to source and acquire properties off-market, enabling us to apply our value-add experience and differentiated business model.”


La Mirada and Seville

Scottsdale, AZ

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

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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.

About Seville     

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.”


Quinlan Crossing

Austin, TX

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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.


Keller Place

Keller, TX

Keller Place aerial photo

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.