HOUSTON, Sept. 28, 2010 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE Amex:WSR) ("Whitestone"), a real estate investment trust that acquires, owns and operates Community Centered PropertiesTM, announced today that it has purchased The Citadel, a Class A community center located in northern Scottsdale, Arizona for $2.2 million. The acquisition price of $78 per square foot, is significantly below replacement cost and was paid in an all cash transaction with proceeds from Whitestone's initial public offering ("IPO") that was completed on August 26th.
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Strategically located at a prime intersection at Pinnacle Peak and Pima Roads, The Citadel is within two miles of exclusive Scottsdale communities including DC Ranch, Troon and Estancia. The exceptional finishes include water features, outdoor fireplace terraces, sprawling desert trees and views of nearby Pinnacle Peak Mountain. "Due to the strong demographics in the surrounding area and the superior physical condition of the 28,548 square foot community, we expect to quickly launch a marketing and leasing program," said Daniel Nixon, Whitestone's Senior Vice President of Leasing and Development. "As a result of our market research and analysis, we believe we have leasing opportunities to attract local tenants including restaurants and other service providers that meet the needs of the surrounding upscale residents as we create a new community within The Citadel."
"The acquisition of the Citadel is our first new investment since we completed our IPO a few weeks ago, and exemplifies our value added, small tenant, investment strategy focused on Community Centered Properties," said James C. Mastandrea, Whitestone's Chairman and Chief Executive Officer. "We are extremely pleased to further increase our presence in the greater Phoenix/Scottsdale market area. The Citadel is complemented by Pima Norte, a Class A community center Whitestone owns just to the north on Pima Road in Carefree. It creates economies of scale using our existing management infrastructure. We expect our investment in the Citadel, upon stabilization, to produce an above market yield, and the value of our investment to increase significantly in the next three to five years."
Mr. Mastandrea said he was pleased with the Whitestone teams thorough due diligence and quick closing in just 33 days from the Company's completion of its IPO on August 26, 2010. "We are excited about the recent completion of our IPO and our plan to add value through opportunistic acquisitions," said Mastandrea.
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 properties, as it markets, leases and manages its properties to match tenants with the shared needs of surrounding neighborhoods. Operations are structured for providing cost-effective service to locally-oriented smaller space tenants (<3,000 sq. ft.). Whitestone has an extremely diversified tenant base concentrated on service offerings such as medical, education, and casual dining. The largest of its 750 tenants comprise less than 3% 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 section of the Company's website has links to SEC filings, news releases, financial reports and investor newsletters.
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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.
