Whitestone Expands in Austin with Parkside Buys

AUSTIN—Whitestone REIT is expanding its presence in Texas' capital city, acquiring Parkside Village North and Parkside Village South for a combined $45 million in cash. The two retail centers are positioned on both sides of the main entrance of the master-planned Circle C Ranch community. The seller was not identified; locally based Stratus Properties developed Parkside Village and had recently put the complex on the market.

Whitestone's Parkside Village acquisitions mark the Houston-based REIT's second and third buys in Austin. The company entered the Austin market this past May with its purchase of the 128,934-square-foot Davenport Village, a neighborhood community center that was the sole asset of a REIT affiliated with Lone Star Funds. The purchase price was not disclosed; published reports say the buildings and land were most recently appraised at about $30 million.

The two Parkside Village properties total 117,146 square feet of leasable space. They're 100% leased, with a retail tenant roster that includes Alamo Drafthouse Cinema, the Austin Diagnostic Clinic and Chase Bank.

'We now have a total of approximately 246,000 square feet of leasable space in one of the fastest growing and most vibrant cities in Texas and America, producing net operating income of approximately $6 million per year,” says James C. Mastandrea, Whitestone's chairman and CEO. “Parkside Village North and Parkside Village South are ideally situated in a highly desirable, affluent area of Austin and adhere perfectly to our Community Centered Property business model.” He adds that the REIT has now invested a total of $135 million in the Austin and San Antonio markets.