Acquisition Overview. Whitestone REIT continues to pursue strategic growth opportunities and acquire Community Centered Properties™ in key markets characterized by dense population and culturally diverse neighborhoods.
Acquisitions Strategy. An acquisition pipeline is in place, and Whitestone REIT is actively working on accretive acquisitions. We have extensive relationships with community banks, attorneys, title companies, and others in the real estate industry with whom we regularly work to identify properties for potential acquisition.
We continue to pursue geographical diversification in growth markets where we have knowledge and experience to offset economic risk from single market concentration. We seek to build critical mass in Phoenix, Dallas and San Antonio, where we own few properties, so that we can leverage our in-house management and leasing operations, consolidating expenses and maximizing value. We may also pursue opportunities in other Southwestern and Western regions that are consistent with our Community Centered Property strategy.
Whitestone REIT is prepared to enter into creative deal structures, including joint ventures and UPREIT transactions.
We intend to acquire distressed assets directly from owners or financial institutions holding foreclosed real estate and debt instruments that are either in default or on bank watch lists. Many of these assets may benefit from our corporate strategy and our management team’s experience in turning around distressed properties, portfolios and companies:
REO-Real Estate Owned. Bank or financial institution-owned commercial real estate that has been foreclosed and held in inventory.
Distressed Assets. Non-performing commercial real estate assets whose maturity has passed, and faces a high probability that it cannot be refinanced. These may include individual properties held by operators or individual owners, or may be part of a larger portfolio.
Distressed Notes. Banks or financial institutions actively seeking to sell notes for non-performing commercial real estate assets. Whitestone REIT may purchase these notes from the bank and negotiate with secondary equity holders.
Vice President, Acquisitions & Asset Management