100% Leased Center Purchase Marks Total of $72 Million in Phoenix
Acquisitions since September 2010
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 closed on the purchase of Phase I of Pinnacle of
Scottsdale, a 113,108 square foot 100% leased Class A Community Center
in North Scottsdale, for $29 million. Phase I is adjacent to 4.45 acres
of developed land with approximately 400 linear feet of frontage on
Scottsdale Road and the potential for additional retail development.
Whitestone REIT (NYSE-AMEX:WSR) Acquired The Pinnacle of Scottsdale for $29 Million - The 100% Leased Center is The Company's Seventh Acquisition since September 2010. The 113,108 square foot Class A Community Center serves retail goods and services to the surrounding community that includes the most affluent zip code in Arizona and some of the most exclusive neighborhoods in Phoenix. The 100% leased Center, strategically located at the high visibility intersection of North Scottsdale Road and Pinnacle Peak Road, features classic Spanish Colonial architecture and landscaped pedestrian-friendly walkways. The retail mix includes Safeway(R), Ace Hardware(R), Starbucks(R), and Hornacek's House of Golf in addition to several small space restaurants and service oriented tenants.
(Photo: Business Wire)
Whitestone now owns Community Centers at the significant “four corners”
of the North Scottsdale trade area, including Terravita (north west),
Pima Norte (north east), The Citadel (south east), and Pinnacle of
Scottsdale (south west), in addition to Desert Canyon, also in North
Scottsdale in the McDowell Mountain area. All purchases were originated
on an off-market basis, priced at a discount to replacement cost, and
have a “value-add” component. Each of these Community Centers are
located at high traffic intersections in stabilized neighborhoods, and
provide essential services to support local communities including
Terravita, McDowell Mountain Ranch, Grayhawk, DC Ranch, Silverleaf,
Estancia, Desert Highlands, and Troon North Villages.
“We are pleased to announce our seventh acquisition since September
2010, bringing our total to eight properties in the greater Phoenix
market. We believe that the North Scottsdale market, which is showing
signs of recovery from the recession, is a great hedge against
inflation, particularly the purchases we have made at significantly
discounted prices for properties with in-place cash flow. Our research
and analysis of the respective five mile radius’ of each property
supports our Community Centered PropertyTM business model and
indicates opportunities for us to position tenants at multiple locations
in the trade area,” said James C. Mastandrea, Whitestone’s Chairman and
Chief Executive Officer. “Whitestone continues to seek Community Center
acquisition opportunities in the Phoenix metro area and also is working
with sellers who may benefit from a tax efficient transaction in which
operating partnership units are exchanged.”
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=50115674&lang=en
Whitestone REIT
Anne Gregory, Vice President Marketing &
Investor Relations, 713-435-2221
ir@whitestonereit.com
Source: Whitestone REIT