REIT Expands Footprint with Parkside Buy
- Jul 08, 2015
Just two months after making its Austin debut, Whitestone REIT has expanded its Central Texas portfolio by acquiring a pair of community centers.
Parkside Village North and Parkside Village South, built by Stratus Properties, were acquired for $45 million in cash. Together, the properties encompass 117,146 rentable square feet, including 27,045 square feet in Parkside Village North and 90,101 square feet in Parkside Village South. The properties generate approximately $2.9 million in annual in-place net operating income.
At the time of the sale, both properties were 100 percent leased to a total of 30 tenants including the 34,000-square foot Alamo Drafthouse Cinema, The Austin Diagnostic Clinic, ZPizza, BurgerFi, and Chase Bank. Parkside Village is located in one of Austin’s most sought-after areas, near major employers and the city’s “Silicon Hills” high-tech corridor. The centers are positioned on either side of the main entrance of the master-planned Circle C Ranch community, at the intersection of Mopac Expressway and Slaughter Lane.
Whitestone’s recent retail deal came two months after it entered the Houston-based REIT entered the market with the purchase of the 128,934-square-foot Davenport Village. Including the latest acquisition, Whitestone’s portfolio totals 67 properties and about 1,420 tenants in Houston, Dallas, San Antonio, and Phoenix. “We now have a total of approximately 246,000 square feet of leasable space in one the fastest-growing and most vibrant cities in Texas and America, producing net operating income of approximately $6.0 million per year,” said Whitestone Chairman & CEO James Mastandrea in a statement.
“With this acquisition closed, we have now invested $135 million in the Austin and San Antonio markets combined. Looking ahead, we expect to continue making acquisitions in both of these dynamic cities as our business gains traction, providing Whitestone with a leading position in each market,” he added.