Strand at Huebner Oaks Shopping Center Acquired by Whitestone REIT
- Sep 29, 2014
The Strand at Huebner Oaks Shopping Center has a new owner. Whitestone REIT, a fully integrated real estate company that owns, operates and redevelops Community Centered PropertiesTM, acquired the retail complex with funds from its corporate credit facility.
“The Strand fits our business model perfectly, as the acquisition is immediately accretive to earnings, provides steady occupancy, cash flow, NOI and upside,” observed James Mastandrea, Whitestone’s chairman & CEO, in a release. “In line with our model, 90 percent of the tenants are small shop, dining and service businesses meeting the needs of the surrounding community.”
The retail property is located near the populated intersection of IH-10 and Huebner Road, a major traffic artery that connects the northwest area to the nearby employment, entertainment and education areas, among which are South Texas Medical Center, USAA Campus, Six Flags Over Texas and the University of Texas at San Antonio, which enrolls 31,000 students. The Strand features high-end exterior features and an illuminated tower that increases visibility.
The family-focused property was 90 percent leased at the time of the sale, with tenants including Half Price Books, Luce Italian Restaurant, Flying Saucer Draught Emporium, Pei Wei, Zoë’s Kitchen, Birkenstock and Smooth Lines Salon & Spa.
“The strand is our second property in San Antonio, Texas, giving us nearly 300,000 square feet and enhancing our presence in one of the fastest-growing cities in the United States, with high barriers to entry for new developments. The trade area surrounding The Strand is a densely populated, affluent community with approximately 52,000 households having a significantly higher average household income than the broader San Antonio MSA.” Mastandrea concluded: ”We continue to source off-market transactions from our pipeline of approximately $500 million of properties. Our purchase of The Strand embodies Whitestone’s acquisition strategy, with significant value-add potential in high-growth markets, accretive to our enterprise value per share.”