HOUSTON, Aug. 11, 2014 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE:WSR) ("Whitestone"), a fully integrated real estate company that owns, operates and re-develops Community Centered PropertiesTM, today announced the official launch of two property redevelopment and repositioning programs in its Houston, Texas, region.
Sugar Park Plaza, a 95,032 square foot property with a daily traffic count of 259,000, is located at the exit ramp of US Highway 59 at Wilcrest Drive. The property sits at the entrance of Sugar Land and serves the densely populated and affluent Fort Bend County area with nearly 50,000 households within a three-mile radius. Current tenants include Suit Mart, Subway, Aga's Indo Pakistani Restaurant and Marshalls.
Providence Plaza, at its highly visible location on US Highway 6, serves the flourishing multi-cultural community in the new growth corridor to Sugar Land. With a daily traffic count of 44,000, current tenants occupying the 90,327 square foot property, such as Spec's Wine, Spirits and Finer Foods, Stanbridge Eye Center and Ace Hardware provide services to over 110,000 surrounding family units.
Both properties are well positioned for significant redevelopment opportunities in the expanding Houston economy. Key to Whitestone's value-add business model and redevelopment and repositioning strategies is the anticipated increase in revenue from the addition of new tenants that provide needed services to the surrounding communities. Whitestone will begin construction in 2014 and expects the payback on its $1.4 million investment to be less than 24 months and result in a center with dramatically increased visibility for the tenants.
James C. Mastandrea, Whitestone's Chairman and CEO, said, "As we continue to lease and strengthen our Houston portfolio, Sugar Park Plaza and Providence Plaza will require modest capital investment in the near term to produce exceptional returns over the next two years in both markets." Mastandrea added, "We believe our focus on service driven small tenants and the redevelopment of these properties will meet the needs of the respective neighborhoods." Mastandrea concluded, "Redeveloping and repositioning these properties will result in strengthened overall property revenues, increased leasing spreads, and with increasing net operating income, corporate-level funds from operations per share."
About Whitestone REIT
Whitestone REIT (NYSE:WSR) is a fully integrated real estate investment trust ("REIT") that owns, operates and redevelops Community Centered PropertiesTM. Whitestone focuses on value creation in its community centers, concentrating on local service-oriented tenants that comprise approximately 70% of its tenants. Whitestone's diversified tenant base provides service offerings including medical, education, casual dining, and convenience services. The largest of its 1,232 tenants comprised less than 1.9% of its annualized base rental revenues as of June 30, 2014. Founded in 1998, the Company is internally managed with a portfolio of 61 commercial properties in Texas, Arizona, and Illinois. For additional information about the Company, please visit www.whitestonereit.com.