Whitestone REIT Acquires Shops at Starwood for $15.7 Million, Plus Adjacent Land, in Dallas Area (Frisco)
98% Leased Class A Center Plus Value-Add Development Opportunity
HOUSTON--(BUSINESS WIRE)-- Whitestone REIT (WSR), 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 closed on the purchase of the Shops at Starwood for $15.7 million in cash, as well as an adjacent 2.73 acre parcel of undeveloped land for $1.9 million in a separate transaction which was funded through the assumption of a $1.4 million non-recourse loan, secured by the land, and cash of $0.5 million. The Shops at Starwood, a 98% leased Class A Center with 55,385 square feet of gross leasable area on 1.5 acres of land in affluent Frisco, Texas, was purchased below replacement cost. The adjacent land is zoned to accommodate additional retail and executive office space.
Whitestone REIT Acquired Shops at Starwood & Adjacent 2.73 Acre Development Land - Frisco, Texas (near Dallas). Award-winning restaurants, boutiques, and office tenants serve the surrounding affluent community. (Photo: Business Wire)
Future Development Potential
The prominent Phase III development site fronts the Dallas North Tollway within the Tollway Overlay District, which grants the highest allowed density of any zoning district. Frisco was the fastest-growing city in the USA in 20091 and ranked among the fastest growing in the nation during 2000-2010.2 Neighborhoods within a half mile of the Shops at Starwood are among affluent North Dallas most exclusive neighborhoods, including Starwood, Chapel Creek, and Stonebriar Park. Population within a five mile trade area is projected to increase by 22% to over 242,000 by 2016.3 Whitestone currently owns two other properties in the Dallas area.
We are pleased to announce this purchase, our first retail Community Center in the Dallas area, with the value-add potential to add another 36,000 square feet of retail and executive office space in the adjacent development site within an in-demand location. Award-winning tenants at Shops at Starwood have been recognized as being Best in their category by D Magazine, Mens Health, WFA Dallas City Voter, City Search and more, said James C. Mastandrea, Whitestones Chairman and Chief Executive Officer. With offerings from the Best Barbershop to the Best Neighborhood Restaurant, and with its specialty dining, small business merchants and upscale service tenants that serve the needs of the local community, the Shops at Starwood development fits well within our Community Centered Property business model.
About Shops at Starwood
The Shops at Starwood is located in Frisco, Texas, a northern suburb of Dallas, at the corner of the North Dallas Tollway and Lebanon Road. A complementary tenant mix of restaurants, fashion boutiques, salons and second-level office space serves the surrounding affluent community. Notable restaurant tenants include TruFire Kitchen & Bar, Kotta Sushi Lounge, Bonnie Ruths Café Trottoir et Patisserie, all of whom have been recognized by D Magazine as Best in their respective categories. The Gents Place has been recognized as Americas Best Barbershop by Mens Health. The Center, built in 2006 (Phase I) and 2008 (Phase II) by a local developer, features richly designed Mediterranean style architecture with pedestrian plazas, water fixtures, and ornamental landscaping.
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 SEC filings, news releases, financial reports and investor newsletters.
Whitestone REIT Acquisitions: Interested parties should contact Bradford Johnson, Whitestone REIT Director of Acquisitions, via email: email@example.com 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||Frisco, Other Dallas-area Cities among Fastest Growing & Dallas Morning News June 23, 2010, Eric Aasen|
|2||US Census Bureau 2010|
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50117185&lang=en
Anne Gregory, 713-435-2221
Vice President Marketing & Investor Relations
Source: Whitestone REITCopyright Business Wire 2011