Consistent with its aim of capturing the Phoenix market,
) acquired Arizona-based Class-A shopping center - Mercado at
Scottsdale Ranch - for $21.3 million. The purchase price includes
a debt assumption worth $11.1 million and unsecured revolving
credit facility of $10.2 million.
Mercado at Scottsdale Ranch is positioned strategically at the
intersection of East Via Linda and Mountain View Road in
Scottsdale. Situated in a populous, master-planned and prosperous
community, the shopping center spans 118,730 square feet and
houses over 30 renowned outlets of
), AJ's Fine Foods and Circle K.
Notably, Mercado at Scottsdale Ranch is the chief shopping
center serving the upscale neighborhood as well as the nearby
vicinities of Mirador and Ensenada del Oro. Consequently, the
center experiences combined vehicle arrivals of 44,300 each day
at the intersection.
Additionally, it experiences current cash flow of roughly $1.7
million (8% of the purchase price). Whitestone expects to add
approximately $0.06 per share in annual FFO (funds from
operations) based on current shares outstanding, excluding debt
Whitestone currently owns 16 Community Centers and future
development land parcels in the Greater Phoenix area - Terravita
marketplace, Pima Norte, The Citadel, The Shops at Pecos Ranch,
The Pinnacle of Scottsdale and The Shops at Pinnacle Peak. With
the Scottsdale-based property acquisition, Whitestone is now the
owner of a large share of tenant space in the affluent submarket
of Phoenix, spanning over 1.4 million of gross leasable area.
The recent deal would strengthen Whitestone's presence in the
upscale markets, especially on the off-market front. Notably,
Whitestone has been focusing on expanding its footprint by
tactically acquiring commercial properties in high-growth
markets. This retail real estate investment trust (REIT) mainly
targets the U.S. properties located in densely populated and
culturally diverse submarkets in Phoenix, Chicago, Dallas, San
Antonio and Houston.
Whitestone currently carries a Zacks Rank #3 (Hold). Better
performing retail REITs that deserves our look include
The Macerich Company
Acadia Realty Trust
). Both carry a Zacks Rank #2 (Buy).
Note: Fund from operations, a widely used metric to gauge
the performance of REITs, is obtained after adding depreciation
and amortization and other non-cash expenses to net
ACADIA RLTY TR (AKR): Free Stock Analysis
MACERICH CO (MAC): Free Stock Analysis Report
WALGREEN CO (WAG): Free Stock Analysis Report
WHITESTONE REIT (WSR): Free Stock Analysis
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