Whitestone Announces Leasing Status of its Newest Development - Pinnacle of Scottsdale Phase II (Scottsdale, Arizona)
May 17 2017 - 6:58PM
Whitestone REIT (NYSE:WSR) (“Whitestone” or the “Company”) today
announced that its newest ground-up development, Pinnacle of
Scottsdale Phase II, located in Scottsdale, Arizona was now over
90% occupied with the addition of several new tenants, including
Merrill Lynch, Starbucks and Orange Theory Fitness.
About Pinnacle Phase II Expansion
Construction was completed in the first quarter of 2017 on this
Community Centered PropertyTM, which is adjacent to its Pinnacle of
Scottsdale property located in Scottsdale, Arizona. The total
construction cost was approximately $7.0 million, including land
and carry costs during the development period. The 27,063
square-foot property is now 91% leased as of May 17,
2017.
Whitestone projects annual net operating income on the property
to be approximately $0.9 million, exceeding its original estimates.
This expansion is estimated to yield a year one unlevered
cash-on-cash return of over 12% and an unlevered IRR of over 19%.
Whitestone purchased the 4.5-acre land parcel in 2011, in a
short-sale transaction, for $950,000, which included a two-level
parking garage.
Merrill Lynch Global Wealth Management will occupy 12,810 square
feet, joining Starbucks, Orange Theory, Tomaso’s Restaurant and
Elements Massage.
About the Neighborhood and Adjacent Center
With a combined 96% occupancy, the successful expansion
highlights Whitestone’s business model meeting the needs and
convenience of the community with E-commerce resistant tenants. The
adjacent., Class A community center was also purchased in 2011 and
is anchored by Safeway. Pinnacle of Scottsdale is surrounded, in a
3-mile radius, by a neighborhood of families with a median
household income of $112,000. The center also has strong traffic
counts with a 50,000 vehicle per day count at the intersection of
Scottsdale and Pinnacle Peak roads.
About the New Tenants
- Bank of America Merrill Lynch, a world leader in wealth
management and financial services is leasing the second floor and
part of the first floor of the Pinnacle Phase II expansion.
- Starbucks expanded and relocated with a new drive thru to meet
the local needs as the neighborhood destination for the
community.
- Both Orange Theory Fitness and Elements Massage rounded out the
health, beauty and wellness aspect of the center, with Orange
Theory Fitness signing 400 members in the first month of
opening.
- Tomaso’s Restaurant, well known in the Phoenix East Valley
expanded to its second location. With al fresco dining, Tomaso’s is
a white table cloth destination restaurant known for authentic
Italian fare and has been voted the best Italian Restaurant in the
Valley since 1977.
CEO CommentsJames C. Mastandrea, Whitestone’s
Chairman and Chief Executive Officer commented, “Maricopa County is
the fastest growing county in the United States per the latest
census report. Shortly after our IPO, we began growing the asset
base of Whitestone and we targeted Arizona, specifically the areas
of Scottsdale, Chandler, Gilbert and Mesa." Mr. Mastandrea added,
“We liked the business-friendly environment and projected that
these areas would rebound strongly from the recession of 2008 and
2009. With 27 properties in the Phoenix MSA, we are poised to
capture the growth of the community and add value by meeting the
neighborhood’s needs, providing convenience and unique services,
with a well-blended mix of national, regional and local
tenants.”
About Whitestone REIT
Whitestone is a community-centered retail REIT
that acquires, owns, manages, develops and redevelops high quality
“E-commerce resistant” neighborhood, community and lifestyle retail
centers principally located in the largest, fastest-growing and
most affluent markets in the Sunbelt. Whitestone’s optimal mix of
national, regional and local tenants provides daily necessities,
needed services and entertainment to the respective communities
which are not readily available online. Visit
www.whitestonereit.com for additional information.
Contact Whitestone REIT:
David K. Holeman
Chief Financial Officer
Investor Relations (713) 435-2219
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