Ares Management Taking Whitestone REIT Private for $1.7B
Whitestone REIT and Ares Management Corporation said Thursday that Whitestone has entered into a definitive merger agreement with certain Ares Real Estate funds in which Ares will acquire all outstanding Whitestone common shares and operating partnership units in an all-cash transaction valued at approximately $1.7 billion. Houston-based Whitestone, which operates 56 convenience-focused retail properties across major markets in Texas and Arizona, announced in early March that it was exploring a sale.
“We believe Whitestone has shown the value of high-return smaller spaces occupied by a well-diversified mix of tenants,” said Dave Holeman, Whitestone CEO. “Our investment strategy is designed to allow businesses to fuel connection and convenience within thriving, dynamic communities. We believe this transaction with Ares is a testament to the value that strategy has created for our business and, ultimately, for our shareholders.” The company’s 4.9-million-square-foot portfolio spans the Dallas-Fort Worth, Houston, San Antonio and Phoenix metro areas.
At Ares Real Estate, David Roth, global head of real estate strategy and growth, said, “Whitestone’s portfolio provides an attractive opportunity to further diversify Ares Real Estate’s footprint with necessity-based retail centers in high-demand, supply-constrained metro regions across Arizona and Texas. This transaction reflects our high conviction in New Economy real estate as today’s consumers are increasingly seeking convenient experiences for their grocery, pharmacy, healthcare, fitness and dining needs.”
The purchase price of $19 per share or unit represents a 12.2% premium to Whitestone’s closing stock price on April 8, 2026, the last full trading day prior to the transaction announcement, and a 26.5% premium to the unaffected share price prior to the March 5, 2026 Reuters article announcing the company had engaged advisors to explore a sale.
BofA Securities is serving as Whitestone’s financial advisor and has provided a fairness opinion to the Board of Trustees, and Jones Lang LaSalle Securities is also serving as a financial advisor. Bass Berry & Sims is serving as Whitestone’s legal advisor.
Citigroup Global Markets Inc. is acting as lead financial advisor and financing provider to Ares with Morgan Stanley also acting as financial advisor. Kirkland & Ellis LLP is serving as legal advisor to Ares.
Pictured: Whitestone’s Ashford Village in Houston.
