Whitestone REIT has purchased Market Street at DC Ranch in Scottsdale, Arizona for USD37.4m, or USD156 per square foot.
Market Street primarily serves the DC Ranch neighbourhood, one of Scottsdale's signature master planned communities, anchored by Safeway grocery, at the cross roads of Pima, and Thompson Peak, just north of Highway 101.
The 241,280-square-foot property is currently 80 per cent occupied and includes land to build and lease another 35,000 square feet.
The addition of Market Street to Whitestone's Arizona portfolio marks its 21st acquisition in the greater Phoenix metropolitan area, and increases its footprint to over 1.8 million square feet of gross leasable space.
Whitestone has acquired three properties, Fountain Hills (USD20.5m), Corporate Park Woodland II (USD2.8m) and Market Street (USD37.4m) totalling USD60.7m since its equity raise in October.
Market Street is expected to be immediately accretive to Whitestone's earnings, contributing USD0.06 to annual funds from operation (FFO) per share.
The seller, DMB, developed Market Street as a part of the overall master planned community to provide the residents of DC Ranch and Silverleaf a dynamic mix of local services and a place to dine, shop and work. In addition, Market Street has evolved into a popular destination to bring the community together by hosting major events including the Tour De Scottsdale and the Run for Ryan House.
James C Mastandrea, Whitestone's chairman and chief executive officer, says: "We are pleased to add Market Street to our portfolio of class 'A' Community Centered Properties in the Phoenix area, and proud to follow in the footsteps of DMB towards the completion and lease-up of the property. Our business model provides an opportunity for our tenants to successfully and profitably build their businesses by meeting the needs of residents in the surrounding communities, which in turn adds value to the property."
Michael Burke, vice president of DMB Commercial, says: "Market Street will continue to flourish under Whitestone's ownership. This transaction is a powerful opportunity for us to sell a successful property to a company with specific expertise in expanding similarly situated neighbourhood centres.”