Whitestone REIT Gives Update on Property Disposition Activities, Nets $34M

Whitestone REIT has updated its disposition activities by announcing the sale of approximately $36 million in property since the third quarter of 2022. Following prorations and transaction costs, Whitestone netted $34 million.

The disposition of property includes the sale of assets in order to have more cash on hand, fund another project or business or pay off debt. In most cases, firms sell property because it is no longer relevant or valuable to their overall asset management strategies.

The acquirer, owner, operator, and developer of open-air, retail centers located predominately in Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio, sold six properties, including South Richey and Bissonnet/Beltway in Houston; Desert Canyon, Pima Norte and Gilbert Tuscany Village Hard Corner in Phoenix; and Pad Site at Spoerlien Commons in Chicago.

The cap rate was 5.6% on the sales, while the occupancy rate was 90.3% and average base rent was $14.51.

“We believe the overall transaction cap rate on these property sales highlights the value of Whitestone’s portfolio of properties, which are located in some of the fastest growing and most desirable markets in the country, noted Whitestone REIT Chief Executive Officer Dave Holeman.

“We anticipate using the proceeds for debt reduction and future accretive acquisitions with greater upside than the properties which were sold,” he added.