Whitestone REIT Acquires Bank Note and Deed On Pinnacle Phase II Property Adjacent to The Pinnacle of Scottsdale
Value-Add Development Opportunity via Assemblage of Adjacent Land Parcels
HOUSTON--(BUSINESS WIRE)-- Whitestone REIT (WSR) (Whitestone), a fully integrated real estate company that owns, operates and re-develops Community Centered Properties TM, 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 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, Whitestones 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, Hornaceks House of Golf, Jade Palace, Jalapeno Inferno (privately owned restaurant, recognized by Phoenix Times Magazine Best of Phoenix Awards), Subway TM, Stag Tobacconist, Starbucks© Coffee, Pinnacle Peak Dentistry, and a variety of other convenience service providers.
About Whitestone REIT
Whitestone REIT is a fully integrated real estate company that owns, operates and re-develops Community Centered Properties TM, 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 Whitestones 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: firstname.lastname@example.org or phone 713.435.2208
Statements included herein that state Whitestones 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. Whitestones actual results, performance or achievements could differ materially from those expressed or implied by these statements. Reference is made to Whitestones regulatory filings with the Securities and Exchange Commission for information or factors that may impact Whitestones 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 Republic Peter Corbett July 22, 2011.
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Anne Gregory, 713-435-2221
Vice President Marketing & Investor Relations
Source: Whitestone REITCopyright Business Wire 2011