Whitestone REIT (WSR) disclosed the acquisition of two much visible hard corners at two of the current Phoenix assets – Village Square at Dana Park and Fulton Ranch-Towne Center Properties. The buyouts offer the company the prospect for value addition, greater visibility and signage revenue.
Notably, Village Square at Dana Park and Fulton Ranch-Towne Center were acquired by Whitestone REIT in 2012 and 2014, respectively, but the hard corners were not available for sale that time.
“Hard corner” is of prime importance in commercial real estate deals. It refers to a real estate that is positioned at the intersection of two roads, offering the real estate frontage on two of its sides. That adds much value to a real estate and generally offers greater return than properties having one side of road frontage.
Specifically, the hard corner at Village Square at Dana Park is positioned at the corner of Val Vista Drive and Baseline Road. The buyout offers scope of greater visibility and signage revenues to its premium 310,000 square foot asset Village Square at Dana Park in Mesa Arizona. This was purchased for $4.7 million along with an existing debt assumption of $2.6 million.
Moreover, the land corner of the Fulton Ranch Town Center is located at its front door, across the street from Hamilton High School. Gaining the land parcels’ control offers the company not only signage control but also an opportunity to capitalize on its position that could be used as a build-to-suit for a restaurant. The acquisition was made for $850,000.
Whitestone REIT currently carries a Zacks Rank #2 (Buy). Investors interested in the REIT sector can also consider Duke Realty Corp. (DRE), Host Hotels & Resorts, Inc. (HST) and Public Storage (PSA) that share the same rank as Whitestone REIT.
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