December 5, 2013 HOUSTON – Whitestone REIT (NYSE: WSR – “Whitestone”), a fully integrated real estate company that owns, operates and re-develops Community Centered PropertiesTM, announced today that it has purchased Market Street at DC Ranch® in Scottsdale, Arizona for $37.4 million, or $156 per square foot. Market Street primarily serves the DC Ranch neighborhood, one of Scottsdale’s signature master planned communities, anchored by Safeway grocery, at the cross roads of Pima, and Thompson Peak, just north of highway 101. The 241,280-square-foot property is currently 80% occupied and includes land to build and lease another 35,000 square feet.
The addition of Market Street to Whitestone’s Arizona portfolio marks its 21st acquisition in the greater Phoenix metropolitan area, and increases its footprint to over 1.8 million square feet of gross leasable space. Whitestone has acquired three properties, Fountain Hills ($20.5 Million), Woodlands ($2.8 million) and Market Street ($37.4 million) totaling $60.7 million since its equity raise in October. Market Street is expected to be immediately accretive to Whitestone’s earnings, adding $0.06 to current Funds From Operation (FFO) per share.
The Seller, DMB developed Market Street as a part of the overall Master Planned Community to provide the residents of DC Ranch and Silverleaf a dynamic mix of local services and a place to dine, shop and work. In addition, Market Street has evolved into a popular destination to bring the community together by hosting major events including the Tour de Scottsdale and the Run for Ryan House.
Whitestone REIT (NYSE:WSR) Acquired Market Street at DC Ranch. The 241,280-square-foot, mixed-use neighborhood center sits at the doorstep of DC Ranch, one of Scottsdale’s signature master planned communities. The center is anchored by a Safeway grocery store and is home to local and national restaurants and a mix of local businesses including Wells Fargo Bank, Fleming’s Steak House, Grimaldi’s Pizza, MidFirst Bank, McCormick & Co., and Edward Jones. For more information see www.beonmarketstreet.com
James C. Mastandrea, Whitestone’s Chairman and Chief Executive Officer, said, “We are pleased to add Market Street to our portfolio of class “A” Community Centered PropertiesTM in the Phoenix area, and proud to follow in the footsteps of DMB towards the completion and lease-up of the property. Our business model provides an opportunity for our tenants to successfully and profitably build their businesses by meeting the needs of residents in the surrounding communities, which in turn adds value to the property.”
