Whitestone REIT Acquires The Shops at Pinnacle Peak for $6.4 Million
Strategic Location Solidifies Market Presence in North Scottsdale
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 Pinnacle Peak, a 41,530 square foot 76% leased Class A Community Center in North Scottsdale, for $6.4 million, or $154 per square foot. The purchase price is a 32% discount to estimated replacement cost.
Whitestone REIT Acquired The Shops at Pinnacle Peak for $6.4 Million - Strategic Location Solidifies Market Presence in North Scottsdale. The 41,530 square foot Class A Community Center is strategically located midway between two other North Scottsdale Centers owned by Whitestone that are also located on Pinnacle Peak Road: The Pinnacle of Scottsdale and The Citadel. www.whitestonereit.com (Photo: Business Wire)
The Shops at Pinnacle Peak is strategically positioned in the marketplace on Pinnacle Peak Road, midway between our Pinnacle of Scottsdale (at Scottsdale Road) and The Citadel (at Pima Road). We now own a relatively large share of smaller service-based tenant space over 183,000 square feet within this two-mile stretch in the affluent North Scottsdale submarket. We have an immediate transformation plan for The Shops at Pinnacle Peak to add value with complementary neighborhood enhancements to the common area that welcome and serve the local community, said James C. Mastandrea, Whitestones Chairman and Chief Executive Officer. Phoenix and the North Scottsdale market remain a long-term growth market with early signs of strong recovery, adding population especially in the 35-55 up and coming age range and ranking third in growth behind Dallas and Houston, two of Whitestones other markets. Whitestone continues to seek Community Center acquisition opportunities in the Phoenix metro area and also is working with sellers who may benefit from a tax efficient transaction in which operating partnership units are exchanged.
Whitestone now owns six Community Centers within the significant four corners of the North Scottsdale trade area, including The Shops at Pinnacle Peak. The other Centers are Terravita (northwest), Pima Norte (northeast in the Cave Creek area), The Citadel (southeast), and Pinnacle of Scottsdale (southwest), in addition to 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 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 The Shops at Pinnacle Peak
The Shops at Pinnacle Peak is located on the southeast corner of the intersection of Pinnacle Peak Road at Miller Road, with a traffic count of over 29,000 cars per day. A new luxury multi-family housing development is planned to be constructed on the land just west at Silverstone.1 The tenant mix at The Shops at Pinnacle Peak is typical of Whitestones Driving Traffic/Driving ValueTM Community Center tenant combination, and includes several privately owned restaurants, medical/health care service providers, an educational provider, 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 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 Whitestones 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 $75 million in Community Centered Properties in the past 12 months.
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 Source: 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.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50293099&lang=en
Anne Gregory, (713) 435-2221
Vice President Marketing & Investor Relations
Bradford Johnson, (713) 435-2208
Director of Acquisitions
Source: Whitestone REITCopyright Business Wire 2012