HOUSTON - Whitestone REIT (NYSE:WSR) has expanded its portfolio with the acquisition of the Garden Oaks Shopping Center, a grocery-anchored retail hub in Houston, Texas. The shopping center spans 107,000 leasable square feet and boasts a 96% occupancy rate. It features a diverse mix of 19 tenants, including a high-performing Planet Fitness (NYSE:PLNT) and an Aldi store, which serves as the anchor tenant.
The Garden Oaks Shopping Center is strategically located on North Shepherd Drive, a major thoroughfare that sees nearly 30,000 vehicles daily. This acquisition aligns with Whitestone's strategy of owning and operating neighborhood centers that cater to the needs of the local community. According to Whitestone REIT COO, Christine Mastandrea, the area has seen property values increase by nearly 50% since 2019, with expectations of continued growth driven by an influx of young professionals.
Funding for this acquisition comes from Whitestone's capital recycling program, which began in 2022. The program aims to enhance the company's portfolio by selling lower-potential centers and reinvesting in higher-quality assets. To date, Whitestone has sold nine centers with a combined capitalization rate of 5.9% based on trailing twelve-month net operating income (NOI). The program has amassed over $80 million in acquisitions, including the recent purchase of the Garden Oaks Shopping Center.
Whitestone CEO, Dave Holeman, expressed optimism about the addition of the Garden Oaks Shopping Center to their portfolio, citing its potential to contribute to same-store net operating income growth as the area develops. The company's focused acquisition strategy has led to the purchase of four high-quality shopping centers since the third quarter of 2022, including Lake Woodlands Crossing, Dana Park Pad, and Arcadia Towne Center.
The Houston market, known for its strong job market and limited supply of new retail centers, continues to exhibit favorable supply and demand fundamentals. Whitestone plans to provide further details about the acquisition and its impact on the company's financials during its earnings call scheduled for March 7th.
This information is based on a press release statement from Whitestone REIT.
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