PLANO, TX-Whitestone REIT paid $25.7 million to Dallas-based St. Ives Realty Inc. for ownership rights to the mixed-use, 89,134-square-foot Headquarters Village in far north Plano. With the buy, the Houston REIT has obtained 67,141 square feet of retail space and 22,256 square feet of office space, situated on approximately 9.51 acres.

The property at 8240 Preston Rd. (just south of SH 121) is 97% leased, includes an adjacent parking expansion area and has in-place cash flow of approximately $2 million, or 8% of the purchase price. According to a press release announcing the transaction, the acquisition was funded through an unsecured revolving credit facility, which has a borrowing cost of approximately 2.5%.

The four-year-old asset is adjacent to the 2,665-acre Legacy master-planned community, which serves Plano and nearby Frisco. The area surrounding Headquarters Village is a mix of corporate offices, residential assets, civic public sports and park areas and hospitality venues. Furthermore, the asset is near development sites slated for a hotel, a multi-family development and Lincoln Property's future office showroom development.

“Headquarters Village, with a high-profile location on Preston Road, has attracted a mix of eleven popular restaurants, plus retail services and office tenants including Paradise Bakery, Comerica Bank, Five Guys Burgers, Superior Abstract & Title and WCO Consulting to serve the surrounding community," says James C. Mastandrea, Whitestone's chairman and CEO in a release. "A variety of small space entrepreneurial retail service tenants round out the tenant mix."  astandrea notes that Whitestone REIT plans to add value by boosting rental rates to market levels, while expanding the tenant base. "Further, because Headquarters Village has close proximity to the Shops at Starwood, Whitestone's other Frisco area community center, and is convenient to our Uptown Tower Center, we will also benefit from economies of scale through our in-house property management team,” he adds.