HOUSTON, Aug. 15, 2016 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE:WSR) (“Whitestone” or the “Company”) today announced that the transformation and repositioning of its Sunset at Pinnacle Peak property in North Scottsdale has substantially increased the occupancy to 96% from 66% at the time the property was acquired in May 2012. Over the same period, net operating income for the property has grown by 43%. The Community Centered PropertyTM was acquired out of foreclosure for $154 per square foot, which was a significant discount to the estimated replacement cost of over $300 per square foot, enjoys a highly visible location at the intersection of Miller Road and Pinnacle Peak Road in North Scottsdale. Sunset also benefits from Whitestone’s dominant market position in the area with ownership of over 250,000 square feet in its four Community Centered PropertiesTM located within a two-mile stretch of Pinnacle Peak Road from Pima Road west to Scottsdale Road.
The location of this Class-A Community Centered PropertyTM is in a densely populated and affluent area of North Scottsdale, with an average household income of $147,000 within a three-mile radius. The area is home to many highly educated professionals and those seeking an active and healthy lifestyle, enabling Whitestone to leverage its market position and significant presence in the area.
In conjunction with its value-add business model, the Company undertook a comprehensive renovation of this architecturally distinctive property to transform and reposition it in order to enhance its marketability and overall economics. Actions taken included rebranding and renaming the property, enhancing visibility with new and larger signage and repainting the exterior with a color scheme developed with Sherwin Williams.
The tenant line-up at Sunset, with a complementary mix of dining, health and wellness, education, services and specialty retail, fits Whitestone’s community center approach. The roster includes concept restaurants Soul Café and Rhythm & Wine Café, and other dining options such as That’s Amore Gelato (rated #1 in Scottsdale by Trip Advisor). Jazzercise, Millennium Day Spa, Jabz Boxing and Sunset Clinic all cater to the area’s fit and healthy lifestyle, while Sylvan Learning Center, The Pet Salon and Summit Cleaners provide other needed services. Sunset’s “internet-resistant” combination of tenants drives customer traffic seven days a week.
Jim Mastandrea, Chairman and Chief Executive Officer, stated “Our innovative business model focuses on acquiring, developing and redeveloping go-to retail centers that provide daily necessities, needed services and entertainment to the community which are not readily available online. Since acquiring Sunset at Pinnacle Peak in May 2012 at a substantial discount to replacement cost, we have increased occupancy to 96% and net operating income by 43%, assembled a complimentary and ‘internet-resistant’ tenant mix and stabilized occupancy, while scaling our business to meet the needs and provide service-based tenants to the community.”
About Whitestone REIT
Whitestone REIT (NYSE:WSR) is a fully integrated real estate investment trust (“REIT”) that acquires, owns, manages, develops and redevelops high quality “internet-resistant” neighborhood, community and lifestyle retail centers. Whitestone’s 69 properties are principally located in Austin, Dallas-Fort Worth, Houston, San Antonio and Phoenix, which are among the fastest-growing markets in the country with highly educated workforces, high household incomes and strong job growth. The Company’s strategy is to target shifting consumer behavior and purchasing patterns by creating a complementary mix of grocery, dining, health and wellness, education, services, entertainment and specialty retail in its properties. Whitestone’s national, regional and local tenants provide daily necessities, needed services and convenience to the community which are not readily available online. For additional information about Whitestone, please visit www.whitestonereit.com.
Forward-Looking Statements
Statements included herein that state the Company’s 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. The Company’s actual results, performance or achievements could differ materially from those expressed or implied by these statements. Reference is made to the Company’s regulatory filings with the Securities and Exchange Commission for information or factors that may impact the Company’s performance.