HOUSTON, Sept. 22, 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 The Strand at Huebner Oaks, a 90% leased, family-focused property containing 73,920 square feet of leasable area on 8.2 acres in the northwest submarket of San Antonio, Texas.
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Whitestone funded the acquisition of The Strand 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 8.3% of the purchase price. Based on Whitestone's current shares outstanding, this acquisition is expected to contribute $0.01 and $0.05 to funds from operations per share, after interest cost, for 2014 and 2015, respectively.
The Strand, a Class "A" property accentuated by high-end exterior finishes and an illuminated tower, is located near the busy intersection of IH-10 and Huebner Road, which is the major ingress/egress traffic artery connecting the northwest suburbs to the nearby employment, entertainment and education hubs including South Texas Medical Center, USAA Campus, Six Flags over Texas and University of Texas at San Antonio with enrollment of 31,000 students.
The Strand features a well balanced and complementary tenant mix including national credit retailers as well as service and family oriented tenants such as Half Price Books, Luce Italian Restaurant, Flying Saucer Draught Emporium, Pei Wei, Zoë's Kitchen, Birkenstock, and Smooth Lines Salon & Spa.
James C. Mastandrea, Whitestone's Chairman and Chief Executive Officer, said, "The Strand fits our business model perfectly, as the acquisition is immediately accretive to earnings, provides steady occupancy, cash flow, NOI and upside. In line with our model, 90% of the tenants are small shop, dining, and service businesses meeting the needs of the surrounding community."
Mastandrea added: "The strand is our second property in San Antonio, Texas, giving us nearly 300,000 square feet and enhancing our presence in one of the fastest growing cities in the United States, with high barriers of entry for new developments. The trade area surrounding The Strand is a densely-populated, affluent community with approximately 52,000 households having a significantly higher average household income than the broader San Antonio MSA." Mastandrea concluded: "We continue to source off-market transactions from our pipeline of approximately $500 million of properties. Our purchase of The Strand embodies Whitestone's acquisition strategy with significant value-add potential in high growth markets, accretive to our enterprise value 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 62 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.
