Pillarstone Acquires Portfolio for $84M

Pillarstone Capital REIT and Whitestone REIT, both in Houston, struck an $84-million deal for a 14-asset, Texas portfolio. As part of the portfolio transaction, Whitestone will keep approximately 84% ownership of operating partnership (OP) units, while Pillarstone will retain Whitestone property management and leasing agreements for two years following the transaction’s close. Whitestone is affiliated with some members on Pillarstone’s management team and board.

Whitestone’s Marek Ciszewski told Connect Media the deal helped Whitestone shed non-core assets. “The main thesis driving this transaction is the transformation of Whitestone to a significantly more valuable, pure-play REIT,” added Ciszewski, who heads investor relations.

The Houston assets were:

• Corporate Park Northwest, 5715 N.W. Central Dr.
• Corporate Park West, 1718 Fry Rd.
• Corporate Park Woodland I, 210-240 Spring Hills Dr., Spring
• Corporate Park Woodlands II, 24722 I-45 N., Spring
• Dairy Ashford Business Center, 12654-12674 Goar Rd.
• Holly Hall, 8303-8315 Knight Rd.
• Holly Knight, 2112-2132 Holly Hall St.
• Interstate 10 Business Park, 1105-1111 Upland Dr.
• Main Park I & II, 3610-3620 Willowbend Blvd. & 11205 S. Main St.
• Westbelt Plaza, 1450 W. Sam Houston Pkwy. N. & 10696 Haddington N.
• Westgate Service Center, 19407 Park Row & 1507 Ricefield Dr.

The Dallas assets were:

• Interchange Building, 9101 LBJ Fwy.
• Uptown Tower, 4144 N. Central Expwy.

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