Value-Add Development Opportunity via Assemblage of Adjacent Land
Parcels
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 the note and deed
on a 4.45 acre expansion parcel of commercially zoned land at The
Pinnacle of Scottsdale for $950,000. This complex acquisition was
accomplished through the purchase of a $3.0 million note on the land
parcel from the lender for $950,000 in cash, a 68% discount, and
simultaneous acceptance of the deed in lieu of foreclosure from the
owner of the land. The land parcel is intended for development of
approximately 55,000 square feet of new retail and executive office
lease space and a fitness club, for which Whitestone intends to begin
pre-leasing in the first quarter of 2012. The property includes an
existing two-story parking garage and approximately 400 linear feet of
frontage on Scottsdale Road adjacent to The Pinnacle of Scottsdale, a
Class A Community Center that Whitestone acquired last week.
Whitestone REIT (NYSE-AMEX:WSR) Acquires Phase II Development Property adjacent to The Pinnacle of Scottsdale for $950,000. Last week, Whitestone REIT acquired The Pinnacle of Scottsdale, a 113,108 square foot Class A Community Center providing retail goods and services to the surrounding community that includes the most affluent zip code in Arizona. The adjacent Phase II development site, acquired today, is a 4.45 acre expansion parcel of commercially zoned land with approximately 400 linear feet of frontage on Scottsdale Road and an existing two-story parking garage--Whitestone intends to construct an additional 55,000 square feet of lease space including retail, office, and a fitness center. The tenant mix at the 100% leased Community Center, located at North Scottsdale Road and Pinnacle Peak Road, includes Safeway(R), Ace Hardware(R), Starbucks(R), and Hornacek's House of Golf and several small space restaurants and service oriented tenants. (Photo: Business Wire)
“We are pleased to announce our eighth acquisition since September 2010.
While The Pinnacle of Scottsdale is an A-quality acquisition, the
adjacent land parcel, with its considerable frontage on Scottsdale Road,
provides an exceptional value-add development opportunity to lease and
build an additional 55,000 square feet of commercial lease space as we
benefit from the assemblage of the two properties,” said James C.
Mastandrea, Whitestone’s Chairman and Chief Executive Officer.
About The Pinnacle of Scottsdale
The Pinnacle of Scottsdale is uniquely located on the northeast corner
of the major intersection of Scottsdale Road at Pinnacle Peak Road, with
a traffic count of over 55,000 cars per day. The State of Arizona owns
the property directly west of the Community Center, and a new luxury
multi-family housing development is planned to be constructed on the
land just south, at Silverstone.1 The tenant mix at The
Pinnacle of Scottsdale, which is 100% leased , includes Safeway®,
Ace® Hardware, Shell® Oil, Hornacek’s House of
Golf, Jade Palace, Jalapeno Inferno (privately owned restaurant,
recognized by Phoenix Times Magazine Best of Phoenix Awards), SubwayTM,
Stag Tobacconist, Starbucks© Coffee, Pinnacle Peak Dentistry,
and a variety of other convenience service providers.
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 900 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
Whitestone’s filings with the Securities and Exchange Commission, 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 Whitestone’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. Whitestone’s actual results,
performance or achievements could differ materially from those expressed
or implied by these statements. Reference is made to Whitestone’s
regulatory filings with the Securities and Exchange Commission for
information or factors that may impact Whitestone’s performance.
1 Sources: “Project May Ease N. Scottsdale Rental Void,” azcentral.com,
July 28, 2011; “Old Rawhide Site in Scottsdale Might Become New
Apartments,” mortgageandrealestatenews.blogspot.com,
The Arizona RepublicPeter CorbettJuly 22, 2011.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50116842&lang=en
Whitestone REIT
Anne Gregory, 713-435-2221
Vice
President Marketing & Investor Relations
ir@whitestonereit.com
Source: Whitestone REIT