HOUSTON, Sept. 30, 2019 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE:WSR) ("Whitestone" or the "Company") announced the 100% lease up completion of a pad site at Fulton Ranch Towne Center property in Chandler, Arizona. Producing attractive financial rewards for Whitestone shareholders, the development results in a stabilized NOI of $263,000, an unlevered return on total cost of 8.8%, and contributes a 16.7% increase of NOI to the center.
About Fulton Ranch Towne Center
Purchased in 2014 at a 7.4% cap rate, the property included vacant land that Whitestone earmarked for development. A four mile drive to Intel's Ocotillo Campus, it is located in Maricopa County, the fastest growing county in the country for the third consecutive year (1). Situated across the street from Arizona's largest high school and on an intersection that has an average vehicle per day (VPD) of approximately 35,000 and a 1-mile average household income (HHI) level in excess of $163,000 and is projected to grow to $185,000 by 2024 (2).
About the Pad Site
Joining us at the property are Costa Vida, Jersey Mike's, and Egg & Joe. Fulton Ranch Towne Center currently offers several regionally and nationally recognized operators, including Verizon Wireless, Old Chicago, Bahama Buck's, PETCO, Lowes Home Center, and Aqua Tots Swimming School.
Jim Mastandrea, Chairman and Chief Executive Officer, commented, "The Fulton Ranch development pad, acquired with the Fulton Ranch Towne Center, proves innovative, scalable and sustainable and compliments our ‘e-commerce resistant' business model. Our investment in the development was approximately $3.0 million of added real estate, which capped at a 6.4% cap rate (3) creates over $4.1 million of market value for our shareholders."
Mr. Mastandrea added, "Given Fulton Ranch Towne Center's desirable location, developing a pad site that brings additional convenience and service to the growing neighborhood was by design. Providing a place for families to gather and creating communities within our properties is quite honestly what we love to do, and what we do best."
About Jersey Mike's
Jersey Mike's Subs is an American submarine sandwich chain headquartered in Manasquan, New Jersey. The Jersey Mike's franchise has almost 1,504 locations open and about 124 more in development across the United States, in addition to three locations in Queensland, Australia and two in Ontario, Canada.
(1) Source: US Census 2019
(2) Source: ESRI, as of September 23, 2019.
(3) Source: CoStar, Chandler, AZ Retail Submarket Report as of September 12, 2019.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company cannot guarantee the accuracy of any such forward-looking statements contained in this press release, and the Company does not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact Whitestone REIT:
Kevin Reed
Director of Investor Relations
(713) 435-2219
[email protected]
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