Whitestone REIT Acquires Anthem Marketplace for $23.3 Million
Expands Arizona Portfolio to 1.5 Million Square Feet
HOUSTON--(BUSINESS WIRE)-- Whitestone REIT (WSR), a fully integrated real estate company that owns, operates and re-develops Community Centered PropertiesTM, announced today that it has completed the off-market purchase of Anthem Marketplace, located in Phoenix, Arizona at the intersection of Anthem Parkway and Gavilan Peak Parkway, across the street from the Anthem Community Park. Anthem Marketplace serves the Anthem and adjacent Tramonto family-oriented master-planned communities in North Phoenix. The 113,293 square foot center is anchored by Safeway and includes a broad tenant mix of dining establishments and personal care services and retailers.
Whitestone REIT Acquired Anthem Marketplace in the family oriented area of Anthem for $23.3 million. Its location, Anthem Parkway and Gavilan Peak Parkway in Phoenix, Arizona, across the street from the Anthem Community Park, enjoys superb access to I-17. The 113,293 square foot center is anchored by Safeway and includes a broad tenant mix of dining establishments and personal care services and retailers. For leasing information see www.whitestonereit.com
Whitestone purchased Anthem Marketplace with $23.3 million of cash drawn on Whitestones unsecured revolving credit facility. Anthem Marketplace has in-place net operating income of approximately $1.8 million, or 8% of the purchase price, and, based on Whitestones current number of shares of common stock outstanding, is expected to add approximately $0.06 per share in annual Funds From Operations.
James C. Mastandrea, Whitestones Chairman and Chief Executive Officer, said, Anthem Marketplace is a Class-A Community Center located near affluent residential neighborhoods and has superb accessibility to I-17. It serves a trade area consisting of approximately 75,000 residents in the seven-mile trade ring. The center was purchased at $206 per square foot which is considerably below replacement cost, and the land pad included in the purchase represents a considerable value-add opportunity with the potential to add 15,000 square feet of leasable space.
Whitestone now owns approximately 1.5 million square feet of gross leasable area in greater Phoenix in 15 Community Centers. Whitestone also owns 3 land parcels which are available for future development. All are strategically located in stabilized neighborhoods with strong demographics, and provide essential services to support local communities. These centers include The Shops at Pecos Ranch, Ahwatukee Plaza, The Citadel, Desert Canyon, Fountain Square, Gilbert Tuscany Village, marketplace at Central, Paradise Plaza, Pima Norte, Mercado at Scottsdale Ranch, The Pinnacle of Scottsdale, The Shops at Pinnacle Peak, Terravita Marketplace and Village Square at Dana Park. The 3 land parcels available for future development are located adjacent to our Pinnacle of Scottsdale, Village Square at Dana Park, and Anthem Marketplace community centers.. All purchases were off-market and priced at a discount to current replacement cost with a value-add component.
About Whitestone REIT
Whitestone REIT 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 consumer service including medical, education, and casual dining. The Company has approximately 1,200 tenants, the largest of which comprised less than 1.2% of Whitestones rental revenues as of March 31, 2013. 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 PropertiesTM 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 more than $268 million in Community Centered Properties since completing its IPO in August 2010.
Forward-Looking Statements: 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.
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Suzy Taylor, 713-435-2219
Director of Investor Relations
Bradford Johnson, 713-435-2208
Vice President of Acquisitions
Source: Whitestone REITCopyright Business Wire 2013