Whitestone REIT Acquires Headquarters Village on Preston Road for $25.7 Million
Newest Asset Located in Plano Expands Portfolio in North Dallas Sub-market to 525,000 SF
HOUSTON--(BUSINESS WIRE)--Whitestone REIT (NYSE: WSR ), 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, announced today that it has closed on the off-market purchase of Headquarters Village, a 89,134 square foot Community Center located within the Preston Road retail corridor in Plano, Texas, for $25.7 million in an all-cash transaction. The purchase of the 9.6 acre Center, which is 97% leased, includes an adjacent parking expansion area and has in-place cash flow of approximately $2 million, or 8% of the purchase price. The purchase was funded through an unsecured revolving credit facility, which has a borrowing cost of approximately 2.5%.
Headquarters Village, a class-A stabilized Community Center completed in 2009, is located in a densely populated trade area in the Preston Road Retail Corridor, adjacent to the prominent 2,665 acre Legacy in Plano master-planned community, and serves the north Dallas trade area, including Plano and Frisco. Plano is home to several Fortune 500 corporations, global companies and over 10,000 businesses, including EDS, Frito-Lay, McAfee, Pepsico and Intuit. The surrounding area contains a mix of corporate offices, multi-family, single-family residential, hospitality and various civic public sports and park areas, and is adjacent to several development sites already slated for a hotel, a multi-family development and Lincoln Property’s future office showroom development.
“The East Plano retail submarket and in particular, the Legacy community, is recognized as one of the most desirable areas to live, work and play in the Dallas metro area,” said James C. Mastandrea, Whitestone’s Chairman and Chief Executive Officer. “Headquarters Village, with a high-profile location on Preston Road, has attracted a mix of eleven popular restaurants, plus retail services and office tenants including Paradise Bakery, Comerica Bank, Five Guys Burgers, Superior Abstract & Title and WCO Consulting to serve the surrounding Community. A variety of small space entrepreneurial retail service tenants round out the tenant mix. We expect to add value through rental rate appreciation to market levels, and by expanding our tenant base. Further, because Headquarters Village has close proximity to The Shops at Starwood, Whitestone’s other Frisco area Community Center, and is convenient to our Uptown Tower Center, we will also benefit from economies of scale through our in-house property management team.” Mastandrea added, “The depth and breadth of Whitestone’s team of associates enabled the acquisition of Headquarters Village to be accomplished at an accelerated pace from contract to execution, through due diligence to closing in less than 20 days.”
Whitestone now owns approximately 4.4 million sf of Community Centered Properties strategically located in high traffic neighborhoods in five major markets: Houston, Dallas, San Antonio, Chicago, and Phoenix, with several future development land parcels in Houston, Dallas, and Phoenix.
About Headquarters Village
Headquarters Village is a class-A Community Center located on the northeast corner of Preston Road at Headquarters Drive in Plano, just south of Highway 121, with a traffic count of over 50,000 cars per day. The tenant mix targeting urban families is typical of Whitestone’s Driving Traffic/Driving ValueTM approach with a cohesive cross-referral service business base. Currently 97% leased with 26 tenants, the Center is home to Superior Abstract & Title, the largest tenant, as well as WCI Consulting and Paradise Bakery. Other small-space tenants with 5,000 square feet or less include eleven restaurants and a mix of health and convenience service providers. Popular casual dining venues at the Center range from sushi, burgers and burritos.
About Whitestone REIT
Whitestone REIT (NYSE:WSR) 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 1,100 tenants, the largest of which comprises less than 1.2% of Whitestone’s 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 Whitestone’s 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 $225 million in Community Centered Properties since completing its IPO in August 2010.