HOUSTON, Aug. 27, 2015 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE:WSR) ("Whitestone" or "the Company") announced today that it has acquired Quinlan Crossing, its fourth community centered property in the fast-growing and economically-strong Austin market. The well-known Quinlan Crossing retail center, which was acquired for a total of $37.5 million, is ideally located between Lake Austin and Lake Travis at the main entrance of the upscale and affluent Steiner Ranch master-planned community, which is home to The University of Texas Golf Club. The rapidly growing area, which boasts strong demographics that include average household income of $117,000 and a median home value of $443,000, is one of Austin's most desirable due to its amenities, exemplary schools and its close proximity to the lakes and to major employers.
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The Company initially entered Austin in late May with the purchase of Davenport Village and has since expanded its holdings in the city to four properties containing a total of 356,000 square feet. Austin is currently ranked #1 in population growth, is ranked #1 as the "Next Big Boom Town in the U.S" by Forbes Magazine, was ranked as the "Best City of the Decade" by Kiplinger in 2010, has an unemployment rate of only 3.4% and has been dubbed "Silicon Hills" due to its proliferation of high-tech companies.
Quinlan Crossing, the trade area's dominant shopping destination, is anchored by a Randalls grocery store and includes Coffee Bean & Tea Leaf, Massage Envy Spa, Menchie's Yogurt and Zacks American Bistro. The community centered property is reflective of Whitestone's service-based, neighborhood necessities focus, as its complementary mix of tenants are dedicated to meeting the daily needs of the over 4,000 Steiner Ranch households.
QUINLAN CROSSING HIGHLIGHTS
- Immediately accretive to earnings with annual "in-place" net operating income of approximately $2.4 million
- Class-A neighborhood community center, built in 2012, with a total of 109,892 square feet of leasable space plus a developable pad with all entitlements and utilities available for the site
- Located in an established and desirable high-traffic area of Austin (over 25,000 residents live in the three-mile trade ring) with strong demographic fundamentals
- 95% leased
- Low near-term tenant rollover risk provides stability and a secure cash flow stream
The acquisition of Quinlan Crossing was funded from Whitestone's $500 million credit facility.
James C. Mastandrea, Chairman and Chief Executive Officer, stated, "Quinlan Crossing meets all of the key elements of our investment strategy and we couldn't be more thrilled to be adding this premier property to our Austin portfolio. What attracted us to Quinlan Crossing is its complementary mix of national and local service-based tenants, which is at the heart of our Community Centered PropertyTM business model, its highly visible prime location within the desirable and affluent Steiner Ranch community and its upside potential with a developable pad. Quinlan Crossing, which is 95% leased, is immediately accretive to earnings and has a secure and strong cash flow stream.
"This acquisition increases Whitestone's Austin footprint to approximately 356,000 square feet of leasable space in one the fastest growing and most vibrant cities in America, producing net operating income of over $8.4 million per year. Including our three San Antonio properties, which we manage out of our newly opened Division office in Austin, we now have a total of 644,000 square feet in the two cities and are one step closer to meeting our objective of becoming a leading owner and operator in each of these markets."
Mr. Mastandrea concluded, "We expect to close on additional acquisitions from our deep pipeline of value-add and high-yield acquisition targets in high-growth, business-friendly markets. At the same time, we will remain steadfast on the execution of our key growth initiatives while concurrently continuing to implement our redevelopment and repositioning plans."
About Whitestone REIT
Whitestone REIT (NYSE:WSR) is a fully integrated real estate investment trust ("REIT") that owns, redevelops, repositions, leases, manages and operates Community Centered PropertiesTM. Whitestone focuses on value creation in its community centers, concentrating on local service-oriented tenants. Whitestone's diversified tenant base provides service offerings including specialty retail, grocery, restaurants, medical, educational and financial services. Founded in 1998, the Company is internally managed with a portfolio of 68 commercial properties in Texas, Arizona and Illinois. For additional information about the Company, please visit www.whitestonereit.com.
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.
CONTACT: Bob Aronson Director of Investor Relations D: (713) 435-2219; M: 832-364-8314 firstname.lastname@example.org