ANTHEM, AZ-Whitestone REIT’s appetite for Phoenix-area assets remains strong. Less than a week after acquiring Mercado at Scottsdale Ranch, the Houston-based REIT bought the 113,293-square-foot Anthem Marketplace from Regency Centers for $23.3 million.
Anchored by a Safeway Grocery Store, the property at 3655 W. Anthem Way was acquired through off-market means. Whitestone REIT relied on cash drawn from it unsecured revolving credit facility. Anthem Marketplace has in-place net operating income of approximately $1.8 million, or 8% of the purchase price, and, based on Whitestone’s current number of shares of common stock outstanding, is expected to add approximately $0.06 per share in annual Funds From Operations.
Whitestone’s Chairman and Chief Executive Officer, said, “Anthem Marketplace is a class-A community center located near affluent residential neighborhoods and has superb accessibility to Interstate 17,” says Whitestone’s chairman and CEO James C. Mastandrea. “It serves a trade area consisting of approximately 75,000 residents in the seven-mile trade ring. The center was purchased at $206 per square foot which is considerably below replacement cost, and the land pad included in the purchase represents a considerable value-add opportunity with the potential to add 15,000 square feet of leasable space.”
Whitestone now owns approximately 1.5 million square feet of gross leasable area in greater Phoenix in 15 community centers. Whitestone also owns three land parcels that are available for future development.