Whitestone REIT (NYSE:WSR) (“Whitestone” or the “Company”), a neighborhood-focused owner and operator of open-air shopping centers in Texas and Arizona, announced the acquisition of the 31,832-sqaure-foot, restaurant-anchored San Clemente at Davenport (“San Clemente”) in Austin, Texas, which is just minutes from the Apple and Tesla campuses and situated amidst the bustling hub of the area’s several technology companies. The San Clemente acquisition complements Whitestone’s existing Davenport Village retail center at the same intersection along Loop 360, one of Austin’s most traveled corridors, and marks the fifth neighborhood shopping center in Whitestone’s portfolio that is located in Texas’s capital city.
Whitestone plans to leverage its institutional knowledge of and strong position in the market to strengthen the performance of the asset and unlock its significant upside potential. Whitestone expects to capitalize on the center’s very strong dynamics and its own retailer relationships to position the property for long-term growth and relevance within the upscale neighborhoods it serves: Davenport Ranch, Westlake, Rob Roy and Barton Creek.
San Clemente possess many of the attributes that are core to Whitestone’s investment philosophy, including:
- San Clemente is located in Austin’s most affluent submarket with an average 1-mile radius home value of nearly $1.5 MM and an average household income in excess of $280,000;
- Strict development restrictions and the center’s proximity to protected lands have prohibited new retail development from being built within the center’s trade area over the last 7 years, despite the surrounding area having less than 40% of Austin’s average square retail feet per person;
- Located at the intersection of Loop 360 and West Lake Drive, the center has over 55,000 Vehicles Per Day (VPD) in supporting traffic and will benefit from the completion of the Loop 360 project; and,
- Austin continues to benefit from strong in-migration and a booming tech sector, including the communities San Clemente serves.
“Whitestone’s leasing team will capitalize on San Clemente’s favorable dynamics and their already strong knowledge of the area in order to deliver significant value to Whitestone shareholders,” said Whitestone REIT CEO, Dave Holeman in a statement.
“This center has all of the dynamics we look for, including strong surrounding schools, a community with a robust job market and upwardly mobile families and the potential to actively remerchandise the center,” added Whitestone REIT President and COO, Christine Mastandrea.
San Clemente is situated within a 3-mile radius of Pennybacker Bridge and Red Bud Trail, the two main river crossings in the Austin area that define traffic flow across the Colorado River by constricting all vehicles to the Westlake Drive and Loop 360 thoroughfares. The center will also benefit from the upcoming Four Seasons development, adding nearly 200 high-end residences to the area.
The center tenant mix includes Fresa’s, a local Mexican favorite with a welcoming atmosphere and outdoor patio that anchors the property, Iron Fitness, a state-of-the-art training and fitness facility and Greenlake Energy, an emerging energy technology company.
Whitestone’s acquisition program complements its strong organic growth. The Company reported first quarter earnings on May 1st and encourages investors to review the related investor presentation.
