Whitestone REIT acquires The Shops at Pecos Ranch in a short sale for USD19m
Whitestone REIT has closed on the off-market purchase of The Shops at Pecos Ranch, a 78,767 square foot 100% leased Community Centre in Chandler, Arizona, for USD18.95 million in an all-cash transaction. The centre has in-place cash flow of approximately USD1.6 million, or 8.4% of the purchase price.
"The Shops at Pecos Ranch, a class-A stabilized Community Center completed in 2010, is located in a densely populated trade area serving Chandler, a Phoenix suburb in the growing Southeast Valley. Tenants housed on the 10-acre site, at the intersection of Dobson and Germann Roads, serve the surrounding Pecos Ranch and Vineyards neighbourhoods. Traffic is enhanced by the property's one-mile proximity to Intel Corporation's nearby new corporate 682-acre campus with approximately 11,000 employees, as well as the developing office submarket surrounding the coming Intel semiconductor manufacturing plant projected for completion in 2013.
Additionally, because The Shops at Pecos Ranch is nearby Whitestone's other Southeast Valley centres, Village Square at Dana Park and Gilbert Tuscany Village, the company expects to benefit from enhanced economies of scale through its in-house property management and leasing team.”
James C Mastandrea, Whitestone's Chairman and Chief Executive Officer, says: "The tenants include four popular restaurants with individual outdoor dining patios, that have each established a lunch crowd pulling from nearby employers, and draw additional traffic for evening and weekend business from the surrounding neighbourhoods. Tenant mix also includes other service tenants including salons, medical and educational tenants – our small space tenant mix formula for our Community Centered property business model.
"The depth and breadth of Whitestone's team of associates enabled the acquisition of The Shops at Pecos Ranch to be accomplished at an accelerated pace from contract to execution, through due diligence to closing in less than 30 days. Pecos Ranch was in Whitestone's pipeline for one year."