HOUSTON, July 1, 2014 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE:WSR) ("Whitestone"), a fully integrated real estate company that owns, operates and redevelops Community Centered PropertiesTM announced today the acquisition of Whitestone's first Fort Worth, Texas area property, Heritage Trace Plaza, a 98% leased, family-focused property containing 70,431 square feet of leasable area anchored by Texas Health Resources.
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Class "A" Heritage Trace Plaza is located at the cornerstone of the burgeoning master-planned, 18,000 acre Alliance Texas community and will serve as a destination for the 1,700 employees of the Federal Aviation Administration's newly constructed Southwest Region Headquarters upon completion in 2015. The addition of Heritage Trace Plaza increases Whitestone's Dallas-Fort Worth metroplex footprint to approximately 600,000 square feet of gross leasable space.
Whitestone funded the Heritage Trace Plaza acquisition from its corporate credit facility, which is priced at 1.75% to 2.50% over LIBOR. Current annual net operating income for the property is approximately $1.5 million, or 7.5% of the purchase price. Based on Whitestone's current shares outstanding, this acquisition is expected to contribute $0.04 and $0.02 to funds from operations per share, after interest cost, for 2015 and 2014, respectively.
Heritage Trace Plaza, the 70,431 s.f. Community Center PropertyTM is Whitestone's 61st property, and sixth in the Dallas/Ft Worth market. The tenants in the property include local restaurants Mooyah Burgers, McAlister's Deli, and national franchises including Subway, FedEx Office, Quest Diagnostics, and Allstate.
James C. Mastandrea, Whitestone's Chairman and Chief Executive Officer, said, "Heritage Trace Plaza is our first acquisition in the Ft. Worth market and meets our Community Center service-oriented business model criteria. With strong demographics and a complementary mix of tenants, we expect the respective businesses operating in our center to meet the needs of residents in the surrounding communities, which in turn adds value to the property and benefits Whitestone shareholders."
Mastandrea added, "The Dallas/Ft. Worth market is exceptionally strong as one of the fastest growing markets in population and job growth in the country; and has been recognized as one of the most desirable cities to live." Mastandrea concluded: "Our 'off-market' accretive investment in Heritage Trace Plaza provides both stable occupancy and cash flow, while offering upside as we add value by creating community gathering areas, signage and marketability for our tenants and enhanced traffic flow. The use of our corporate credit facility for the acquisition provides us the opportunity to add community centers such as Heritage Trace Plaza quickly and efficiently."
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 approximate 1,250 tenants comprised less than 1.9% of its annualized base rental revenues as of March 31, 2014. Founded in 1998, the Company is internally managed with a portfolio of 60 commercial properties in Texas, Arizona, and Illinois. For additional information about the Company, 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.
