HOUSTON--Whitestone has made its first major acquisitions in the Houston market. The REIT has purchased Williams Trace Plaza and the Shops at Williams Trace in Sugar Land for a total transaction price of $40.7 million.

“We are pleased to add Williams Trace Plaza and The Shops at Williams Trace as our first major investments in the Houston area," James C. Mastandrea, Whitestone's chairman and chief executive officer, told GlobeSt.com.

Williams Trace Plaza, bought for $20.1 million, totals 129,222 square feet of leasable space on approximately 15 acres. The occupancy rate of the center is currently 95 percent. The Shops at Williams Trace, bought for $20.6 million, totals 132,991 square feet of leasable area on approximately 12 acres. Occupancy at the center is currently 87 percent.

The shopping centers are located southwest of Houston, along State Highway 6. The strong existing tenant mix reflects Whitestone's business model and includes national as well as regional and local tenants. The centers, anchored by Randall's and 99 Ranch Market, includes Walgreens, Luby's Cafeteria, Los Tios Restaurant and Kumon Math and Reading.

The acquisition was funded from Whitestone's new unsecured $500 million credit facility with nine major banks, which is currently priced at 1.86 percent.

"The two properties are our first major acquisitions in the Houston market and bring Whitestone's Houston footprint to over 2.6 million square feet of leasable space in 33 Community Centered Properties,” Mastandrea says. “The properties fit our Community Centered Property business model, a mixture of national and local tenants who serve the needs of the surrounding communities and provide economies of scale through our in-house management and leasing team.

"Looking forward, we anticipate upgrading our portfolio in Houston through acquisitions, dispositions of legacy assets and the repositioning and redevelopment of our properties.”