Whitestone REIT Sells Three Properties for Nearly $40M
The company expects a gain on sale of $14 million in Q4 2019.
HOUSTON TX – Whitestone REIT has closed on the sale of three Houston properties for a total price of $39.7 million.
The sale of the joint-venture, non-core properties, represents a capitalization rate of 6.8% on a trailing one year net-operating income. The company expects to record a $14 million gain on sale in the fourth quarter. Upon closing costs and repayment of debt, $12.3 million in net proceeds were received.
As a result of the sale, Whitestone expects to receive an $11 million cash distribution from its joint-venture stake. The REIT will recycle the capital to invest in its existing assets, including developments and redevelopments.
The property sales coincide with the REIT’s strategic long-term plan to focus on retail “e-commerce resistant” tenants and to reduce general and administrative expenses while investing in its existing assets.
Whitestone REIT is a retail REIT that focuses on acquiring, owning, managing, developing and redeveloping retail centers located in high-growth markets throughout the Sunbelt.