BLVD Place is among the properties in Houston’s Galleria area that Whitestone REIT (NYSE:WSR) plans to acquire alongside Eldorado Plaza in Dallas. According to the purchase agreements, the enormous acquisition of the two Texas properties will together cost $204.6 million. The deals are expected to close in May subject to the fulfillment of customary conditions.
Real estate investment trusts have been eyeing urban and high-end assets
Even though BLVD Place, which stands on a 216,944-square-foot site was 99% leased to tenants at the time of sale, it becomes the latest blockbuster to feature in Houston’s high-profile mixed-use developments. Some of those tenants include Whole Foods Market, True Food Kitchen, Elaine Turner, Verizon Wireless and Pinkberry among others.
The acquisition of the two properties may not be such a surprise because in the recent past real estate investment trusts have been developing a keen interest in high-end assets. Just last summer, River Oaks District, which is an upscale development home, was acquired by JPMorgan Asset Management at a cost of more than $550 million.
Blvd Place is a Class A lifestyle center and Whitestone expects to build another phase of the development on the 1.43 acres it has acquired. The Blvd Phase II-B, which Whitestone says is it is likely to cost $45 million, will be a 137,000-square-foot six-story building.
The BLVD Place is Whitestone’s 28th property in the Houston region
Whitestone, which was founded in 1998, is owned by a fund managed by Bailard of Foster City, California. It has been on trail of acquiring properties within the Houston region with records indicating an ownership of 55 properties as of the end of 2016. Last year, it collected $8.1 million on revenue of $104.4 million.
While BLVD Place will be the company’s 28th property in Houston, Eldorado Plaza, which sits on 221,577-square-foot, will be in the seventh position in the Dallas area. This was also 97% leased out at the time of sale to the likes of Chipotle Mexican Grill, Chico’s, LA Fitness, Belk and Lane Bryant among others. In the meantime, Whitestone’s stock closed at $13.08 a fall of $1.17 or 8.21%.
