Whitestone REIT launches redevelopment programme for four Houston properties
Whitestone REIT, a real estate investment trust which operates community centred properties, has launched four property redevelopment and repositioning programmes in its Houston, Texas, region.
Whitestone intends to reposition existing properties and capitalise on market demand resulting in increased rental rates from new tenants and adding value for existing tenants.
At a USD60 per square foot cost basis (undepreciated) and a strong local economy, the Houston portfolio is well-positioned for significant redevelopment opportunities. The company's business model and its rebranding strategies primarily target tenants which provide needed services to the surrounding communities.
The Houston properties being repositioned, redeveloped, and rebranded are:
Woodlake Plaza, a 106,000 square foot community office building located near the Westchase District;
Main Park, a 113,000 square foot community centre located near Reliant Stadium and the Texas Medical Center, targeting medical labs,
Lion Square, a 118,000 square foot retail community centre located in the Asian district in southwest Houston; and,
Torrey Square, a 106,000 square foot retail centre located in one of the predominately Latino districts in north Houston.
"The four properties selected for redevelopment have the potential to produce exceptional returns on our modest capital investment in the near term," says James C Mastandrea, Whitestone's chairman and chief executive. "Considering their low cost basis and advantageous locations, these properties have significant intrinsic value, and should benefit from Houston's vibrant economy.
"We intend to grow our enterprise value and leverage our team's unique skills by timing our value-add activities with the opportunities resulting from the real estate cycles in our markets. To further drive value, over the coming quarters, we expect to balance additional redevelopment efforts to extract intrinsic value in our properties with acquisitions of off-market properties to enhance returns to our shareholders."