Kid-Friendly Destination Establishes Key Foothold as Company Expands
Geographic Coverage Beyond Scottsdale
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 purchase of Paradise Plaza, a 125,898
square foot 100% leased Community Center in Paradise Valley, for $16.3
million, or $129 per square foot. The purchase price was a 30% discount
to estimated replacement cost and was funded through the assumption of a
$9.1 million mortgage loan and the balance in cash. The mortgage loan
that was assumed is non-recourse, secured by the property, has five
years of term remaining, and bears interest at 3.5% in year one and 4.7%
in subsequent years.
Whitestone REIT (NYSE:WSR) Acquired Paradise Plaza for $16.3 Million - Strategic location expands market presence into the upscale Paradise Valley area in Phoenix and augments the Company's solid presence within adjacent North Scottsdale. The 125,898 square foot Community Center is strategically located on the northeast corner of Cactus Road at Tatum Boulevard. www.whitestonereit.com (Photo: Business Wire)
“Paradise Plaza is well located in a high barrier to entry trade area
serving the affluent neighborhoods of Paradise Valley, Phoenix and
Scottsdale on Cactus Road near North Tatum Boulevard. We now own nearly
750,000 square feet of lease space, including ground leases, in the
greater Phoenix area. Paradise Plaza is solidly positioned as a
kid-friendly destination with 19 primarily small space service-based
tenants that drive traffic into the center. A value-add transformation
project at Paradise Plaza is nearing its completion, including final
build-out for Paradise Pediatrics, an established physician practice
that will relocate to the Center by September, and Kids, Inc. Learning
Center, scheduled to commence their lease in August. Construction
includes a playground and other complementary neighborhood enhancements
to create our signature Community Gathering Spot within the common area
to welcome and serve the local community,” said James C. Mastandrea,
Whitestone’s Chairman and Chief Executive Officer. “We are also
evaluating a rental-based covered parking feature as an additional
value-add component at Paradise Plaza, as well as for several of our
other Arizona properties, where covered parking comes at a premium.”
Whitestone now owns seven Community Centers within the significant
Scottsdale trade area, including Paradise Plaza. The other Centers
include The Shops at Pinnacle Peak, Terravita Marketplace, Pima Norte,
The Citadel, and The Pinnacle of Scottsdale, as well as Desert Canyon,
located in the McDowell Mountain area. All purchases were priced at a
discount to current 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 Paradise Valley,
Terravita, McDowell Mountain Ranch, Grayhawk, DC Ranch, Silverleaf,
Estancia, Desert Highlands, and Troon North Villages. Whitestone also
owns three other Community Centers in the greater Phoenix market:
Ahwatukee Plaza, MarketPlace at Central, and Gilbert Tuscany Village.
About Paradise Plaza
Paradise Plaza is located on the northeast corner of the intersection of
Cactus Road at North Tatum Boulevard, with a traffic count of over
43,000 cars per day. The tenant mix targeting families with children is
typical of Whitestone’s Driving Traffic/Driving ValueTM
approach with a cohesive cross-referral service business base. Currently
100% leased with 19 tenants, the Center is home to several pediatric
medical/health care service providers, educational providers, a
well-known community theater, children’s furniture dealers, bicycle
shops, and a variety of other convenience service providers. The tenant
base benefits from the lower taxes in the City of Phoenix while serving
the adjacent incorporated Town of Paradise Valley, North Phoenix and
Scottsdale.
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 service
offerings including medical, education, and casual dining. The largest
of its over 950 tenants comprises less than 1.5% 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: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 $95 million in Community Centered Properties
in the past 12 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=50371903&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