Construction Underway for New Planet Fitness Location in Value-Add
Scottsdale Community Center
HOUSTON--(BUSINESS WIRE)--
Whitestone REIT (NYSE: 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 off-market purchase of Fountain Square,
a 118,209 square foot Community Center in Scottsdale, for $15.4 million,
or $130 per square foot. The purchase price was an all-cash transaction
and represents a 49% discount to estimated replacement cost.
Whitestone REIT (NYSE:WSR) Fountain Square for $15.4 Million. Construction is underway for a new Planet Fitness location in the 118,209 square foot Community Center, which is strategically located on a high-traffic intersection (77,000 cars per day) at the corner of Bell Road at 7th Street in Phoenix. Southwestern Spanish style architecture surrounds several shaded gathering spots and fountains, where the tenant mix ranges from medical and educational service providers to casual dining and convenience services. www.whitestonereit.com (Photo: Business Wire)
“Fountain Square is well located on Bell Road near 7th Street
in a densely populated trade area serving the Moon Valley and Paradise
Valley neighborhoods in northern Phoenix, which has contributed to its
stable tenancy. The Center is a value-add acquisition opportunity with
current occupancy of 76%. The vacancies since the ‘08-‘09 recession are
primarily due to restricted and limited funds from the court appointed
receiver to pay for tenant improvements and leasing commissions. The
upside opportunity in this property is filling the vacant space and
creating a Whitestone feature of a primary ‘Community Gathering Place,’
as the approximately 12 acre property already has an inviting
Southwestern Spanish style architecture and design that simply needs
some fresh paint and tender love and care,” said James C. Mastandrea,
Whitestone’s Chairman and Chief Executive Officer. “Fountain Square also
has second floor office space currently occupied by various service
tenants: a dentist, music school, and optometrist. The Community Center
setting is evident on the premises, with several shaded outdoor
people-friendly gathering spots and outdoor dining settings surrounding
fountains. Construction is currently underway to build out a 20,000
square foot space to launch Planet Fitness as a new tenant. The tenants
include salons, several restaurants, medical and educational tenants –
our standard small space tenant mix formula for our Community Centered
property model. The Center is shadow-anchored by Safeway Supermarket,
McDonalds and Sleep America.”
Whitestone now owns nearly 870,000 square feet of lease space in the
greater Phoenix area in eleven Community Centers, strategically located
in high traffic neighborhoods, including Fountain Square. The other
Centers include Ahwatukee Plaza, The Citadel, Desert Canyon, Gilbert
Tuscany Village, MarketPlace at Central, Paradise Plaza, Pima Norte, The
Pinnacle of Scottsdale, The Shops at Pinnacle Peak, and Terravita
Marketplace. All purchases were off market and priced at a discount to
current replacement cost and have a value-add component. Each of these
Community Centers is in a stabilized neighborhood with strong
demographics, and provides essential services to support local
communities.
About Fountain Square
Fountain Square is on the northwest corner of Bell Road at 7th
Street on a busy intersection with a traffic count of over 77,000 cars
per day. The tenant mix targeting urban families is typical of
Whitestone’s Driving Traffic/Driving ValueTM approach with a
cohesive cross-referral service business base. Currently 76% leased with
27 tenants, the Center is home to US Bank and Rent-A-Center, several
medical/health care service providers ranging from vision care and
dentists to a Weight Watchers location, as well as educational tenants
such as Kumon Math & Reading, Yamaha Music School, a community theater,
plus several convenience service providers and casual dining venues.
About Whitestone REIT
Whitestone REIT (NYSE: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 consumer
service including medical, education, and casual dining. The Company has
over 950 tenants, the largest of which comprises less than 1.5% of
Whitestone’s 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: Whitestone REIT purchases Community
Centered Properties and has worked with banks and financially distressed
commercial property owners with pending loan maturities, as well as
their tax advisors, estate planners and lenders to close over $125
million in Community Centered Properties in the past 24 months.
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.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50414633&lang=en
Whitestone REIT
Anne Gregory, (713) 435 2221
Vice President
Marketing & Investor Relations
ir@whitestonereit.com
or
Acquisitions:
Bradford
Johnson, (713) 435-2208
Director of Acquisitions
bjohnson@whitestonereit.com
Source: Whitestone REIT