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7/07/15
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Whitestone has acquired Parkside Village North and Parkside Village South, two service-oriented retail centers in the fast-growing Austin, TX market, for a combined price of $45 mil. The acquisition was funded by proceeds from Whitestone's recent sale of additional shares of its common stock.
The Class A centers contain a total of 117.1k sf ($384/sf) of rentable space. They’re fully leased to a diverse group of national and local service-based credit tenants that serve the over 4,800 Circle C Ranch community households. Between them, the properties contain 30 tenants, including Alamo Drafthouse Cinema, The Austin Diagnostic Clinic and Chase Bank.
With these latest acquisitions, Whitestone has a portfolio of 67 properties with approximately 1,420 tenants. The two well-known retail centers are strategically positioned on both sides of the main entrance of the prominent and affluent Circle C Ranch master-planned community, which is located at the intersection of Mopac Expressway and Slaughter Lane. The rapidly growing area, with a demographic that includes average household income of $109k and a median home value of $460k, is one of Austin's most desirable due to its close proximity to major employers and to the city's "Silicon Hills" high-tech companies.
James C. Mastandrea, Chairman and Chief Executive Officer, stated, "We now have a total of approximately 246k sf of leasable space in one the fastest growing and most vibrant cities in Texas and America, producing net operating income of approximately $6 mil per year. Parkside Village North and Parkside Village South are ideally situated in a highly desirable, affluent area of Austin and adhere perfectly to our Community Centered Property(TM) business model.”
“We look forward to integrating these two properties, which are fully leased, into our portfolio and to realizing the synergistic benefits and economies of scale with our three community centered San Antonio properties,” Mastandrea added. “These properties are located less than one hour from Austin and have a total of 288k sf of leasable space generating net operating income of approximately $4 mil per year.”
Whitestone has also broken ground on the much anticipated Phase III expansion of The Shops at Starwood. The highly recognizable, fully-leased center is located in Frisco, TX at the intersection of the Dallas North Tollway and Lebanon Rd. Phase III, which will cost approximately $6.9 mil to build, will add a total of 38.2k sf to the Class A mixed-use property, of which 26.7k sf is expected to be restaurant and retail space and 11.5k sf will be executive office space.
The company projects that, at a 95% stabilized occupancy rate, the additional space will generate net operating income of $1.1 mil. The Phase III expansion will contribute to the growing development along the Dallas North Tollway, which includes the new Dallas Cowboys' headquarters and training facilities that are located just one mile south of The Shops at Starwood. Whitestone anticipates that the Phase III development, which exemplifies its strategy of adding value through expansion, will be completed in the first quarter of 2016.
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