HOUSTON--(BUSINESS WIRE)--
Whitestone REIT (NYSE: WSR – “Whitestone”), a fully integrated real
estate company that owns, operates and re-develops Community Centered
PropertiesTM, announced today that it has purchased Market
Street at DC Ranch in Scottsdale, Arizona for $37.4 million, or $156 per
square foot. Market Street primarily serves the DC Ranch neighborhood,
one of Scottsdale’s signature master planned communities, anchored by
Safeway grocery, at the cross roads of Pima, and Thompson Peak, just
north of Highway 101. The 241,280-square-foot property is currently 80%
occupied and includes land to build and lease another 35,000 square feet.
Whitestone REIT (NYSE:WSR) Acquired Market Street at DC Ranch. The 241,280-square-foot, mixed-use neighborhood center sits at the doorstep of DC Ranch, one of Scottsdale's signature master planned communities. The center is anchored by a Safeway grocery store and is home to local and national restaurants and a mix of local businesses including Wells Fargo Bank, Fleming's Steak House, Grimaldi's Pizza, MidFirst Bank, McCormick & Co., and Edward Jones. For more information see www.beonmarketstreet.com
The addition of Market Street to Whitestone’s Arizona portfolio marks
its 21st acquisition in the greater Phoenix metropolitan
area, and increases its footprint to over 1.8 million square feet of
gross leasable space. Whitestone has acquired three properties, Fountain
Hills ($20.5 Million), Corporate Park Woodland II ($2.8 million) and
Market Street ($37.4 million) totaling $60.7 million since its equity
raise in October. Market Street is expected to be immediately accretive
to Whitestone’s earnings, contributing $0.06 to annual Funds From
Operation (FFO) per share.
The Seller, DMB developed Market Street as a part of the overall Master
Planned Community to provide the residents of DC Ranch and Silverleaf a
dynamic mix of local services and a place to dine, shop and work. In
addition, Market Street has evolved into a popular destination to bring
the community together by hosting major events including the Tour De
Scottsdale and the Run for Ryan House.
James C. Mastandrea, Whitestone’s Chairman and Chief Executive Officer,
said, “We are pleased to add Market Street to our portfolio of class 'A'
Community Centered PropertiesTM in the Phoenix area, and
proud to follow in the footsteps of DMB towards the completion and
lease-up of the property. Our business model provides an opportunity for
our tenants to successfully and profitably build their businesses by
meeting the needs of residents in the surrounding communities, which in
turn adds value to the property.”
Mastandrea added, “While Market Street was not on the market for sale,
we began discussing a possible purchase directly with DMB in early
summer. We learned that the principals of DMB and Whitestone’s
principals shared similar philosophies with regard to the success
related to investing ‘reputational equity’ in a property, community,
and/or business for it to be profitable, and reached a purchase/sale
agreement. During the due-diligence period, we gained a much greater
appreciation for DMB’s concept, design, and implementation of their
Market Street development and the overall development of DC Ranch.”
Mastandrea concluded, “Our team is excited to be directly involved in
Market Street and build on its top-tier tenant base which includes
Safeway, Wells Fargo Bank, Fleming’s Steak House, Grimaldi’s Pizza,
MidFirst Bank, McCormick & Co., and Edward Jones.”
Michael Burke, Vice President of DMB Commercial said, “Market Street
will continue to flourish under Whitestone’s ownership. This transaction
is a powerful opportunity for us to sell a successful property to a
company with specific expertise in expanding similarly situated
neighborhood centers,”
About Whitestone REIT
Whitestone REIT (NYSE:WSR) is a fully integrated real estate investment
trust that owns, operates and redevelops Community Centered PropertiesTM.
Whitestone focuses on value creation in its community centers,
concentrating on 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, casual
dining, and convenience services. The largest of its approximately 1,200
tenants comprised less than 1.6% of its annualized base rental revenues
as of September 30, 2013. Founded in 1998, the Company is internally
managed with a portfolio of 59 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 contains filings
made with the Securities and Exchange Commission, news releases and
financial reports.
About DMB
DMB, an Arizona-based real estate company, creates enduring places that
capitalize on location and climate, shaping life for generations. For
nearly thirty years, DMB has earned a national reputation for creating
some of the most iconic communities in the West, DC Ranch in Scottsdale
and Verrado® in Buckeye, just to name a few. DMB strives to
achieve enduring business success by creating extraordinary new
environments that enrich people’s lives, are appreciated and rewarded in
the market and have a positive impact on the larger community of which
they are part. For more information, visit www.dmbinc.com.
DMB Commercial specializes in strategically shaping and developing
properties within DMB’s portfolio of planned communities featuring
retail, office, hospitality and other mixed-use components. Properties
include Canyon Village, DC Ranch Crossing, and Market Street (all within
DC Ranch in Scottsdale, AZ), Centerpoint on Mill (Tempe, AZ), Eastmark
(Mesa, AZ), The Shops at Kukui’ula, (Kauai, HI), Main Street at Verrado,
(Buckeye, AZ), and One Scottsdale (Scottsdale, AZ).
Forward-Looking Statements
Statements included herein that state the Company'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. The Company's actual results,
performance or achievements could differ materially from those expressed
or implied by these statements. Reference is made to the Company's
regulatory filings with the Securities and Exchange Commission for
information or factors that may impact the Company's performance.
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20131205006378/en/
Whitestone REIT:
Suzy Taylor, (713) 435-2219
Director
of Investor Relations
STaylor@WhitestoneREIT.com
or
Bradford
Johnson, (713) 435-2208
Vice President of Acquisitions
BJohnson@WhitestoneREIT.com
or
DMB:
Denise
D. Resnik, 602-956-8834 x 111
DRA Strategic Communications
denise@dracommunications.com
Source: Whitestone REIT