Whitestone REIT Acquires Headquarters Village on Preston Road for $25.7 Million

  Whitestone REIT Acquires Headquarters Village on Preston Road for $25.7

Newest Asset Located in Plano Expands Portfolio in North Dallas Sub-market to
                                  525,000 SF

Business Wire

HOUSTON -- April 01, 2013

Whitestone REIT (NYSE: WSR – “Whitestone”), a fully integrated real estate
company that owns, operates and re-develops Community Centered Properties^TM,
which are visibly located properties in established or developing culturally
diverse neighborhoods,announced today that it has closed on the off-market
purchase of Headquarters Village, a 89,134 square foot (“sf”) Community Center
located within the Preston Road retail corridor in Plano, Texas, for $25.7
million in an all-cash transaction. The purchase of the 9.6 acre Center, which
is 97% leased, includes an adjacent parking expansion area and has in-place
cash flow of approximately $2 million, or 8% of the purchase price. The
purchase was funded through an unsecured revolving credit facility, which has
a borrowing cost of approximately 2.5%.

Whitestone REIT (NYSE:WSR) Acquired Headquarters Village in the Affluent North
Dallas Suburb of Plan ...

Whitestone REIT (NYSE:WSR) Acquired Headquarters Village in the Affluent North
Dallas Suburb of Plano for $25.7 Million. Eleven popular restaurant venues and
convenience service offerings drive traffic into the 89,134 square foot
class-A Community Center, which is strategically located on a high-traffic
intersection (50,000 cars per day) at the corner of Preston Road at
Headquarters Drive, just south of Highway 121 in Plano, Texas. The Center is
home to Superior Abstract & Title as well as Paradise Bakery and a variety of
small space tenants, including a mix of health and convenience service
providers. www.whitestonereit.com (Photo: Business Wire)

Headquarters Village, a class-A stabilized Community Center completed in 2009,
is located in a densely populated trade area in the Preston Road Retail
Corridor, adjacent to the prominent 2,665 acre Legacy in Plano master-planned
community, and serves the north Dallas trade area, including Plano and Frisco.
Plano is home to several Fortune 500 corporations, global companies and over
10,000 businesses, including EDS, Frito-Lay, McAfee, Pepsico and Intuit. The
surrounding area contains a mix of corporate offices, multi-family,
single-family residential, hospitality and various civic public sports and
park areas, and is adjacent to several development sites already slated for a
hotel, a multi-family development and Lincoln Property’s future office
showroom development.

“The East Plano retail submarket and in particular, the Legacy community, is
recognized as one of the most desirable areas to live, work and play in the
Dallas metro area,” said James C. Mastandrea, Whitestone’s Chairman and Chief
Executive Officer. “Headquarters Village, with a high-profile location on
Preston Road, has attracted a mix of eleven popular restaurants, plus retail
services and office tenants including Paradise Bakery, Comerica Bank, Five
Guys Burgers, Superior Abstract & Title and WCO Consulting to serve the
surrounding Community. A variety of small space entrepreneurial retail service
tenants round out the tenant mix. We expect to add value through rental rate
appreciation to market levels, and by expanding our tenant base. Further,
because Headquarters Village has close proximity to The Shops at Starwood,
Whitestone’s other Frisco area Community Center, and is convenient to our
Uptown Tower Center, we will also benefit from economies of scale through our
in-house property management team.” Mastandrea added, “The depth and breadth
of Whitestone’s team of associates enabled the acquisition of Headquarters
Village to be accomplished at an accelerated pace from contract to execution,
through due diligence to closing in less than 20 days.”

Whitestone now owns approximately 4.4 million sf of Community Centered
Properties strategically located in high traffic neighborhoods in five major
markets: Houston, Dallas, San Antonio, Chicago, and Phoenix, with several
future development land parcels in Houston, Dallas, and Phoenix.

About Headquarters Village

Headquarters Village is a class-A Community Center located on the northeast
corner of Preston Road at Headquarters Drive in Plano, just south of Highway
121, with a traffic count of over 50,000 cars per day. The tenant mix
targeting urban families is typical of Whitestone’s Driving Traffic/Driving
Value^TM approach with a cohesive cross-referral service business base.
Currently 97% leased with 26 tenants, the Center is home to Superior Abstract
& Title, the largest tenant, as well as WCI Consulting and Paradise Bakery.
Other small-space tenants with 5,000 square feet or less include eleven
restaurants and a mix of health and convenience service providers. Popular
casual dining venues at the Center range from sushi, burgers and burritos.

About Whitestone REIT

Whitestone REIT (NYSE:WSR) is a fully integrated real estate company that
owns, operates and re-develops Community Centered Properties^TM, which are
visibly located properties in established or developing culturally diverse
neighborhoods. Whitestone focuses on value-creation in its Centers, as it
markets, leases and manages its Centers to match tenants with the shared needs
of surrounding neighborhoods. Operations are structured for providing
cost-effective service to local service-oriented smaller space tenants (less
than 3,000 square feet). Whitestone has a diversified tenant base concentrated
on consumer service including medical, education, and casual dining. The
Company has approximately 1,100 tenants, the largest of which comprises less
than 1.2% of Whitestone’s rental revenues. Headquartered in Houston, Texas and
founded in 1998, the Company is internally managed with a portfolio of
commercial properties in Texas, Arizona, and Illinois. For additional
information about the Company, please visit www.whitestonereit.com. The
Investor Relations section of the Company's website has links to Whitestone’s
filings with the Securities and Exchange Commission, news releases, financial
reports and investor newsletters.

Whitestone REIT Acquisitions: Whitestone REIT purchases Community Centered
Properties and has worked with banks and financially distressed commercial
property owners with pending loan maturities as well as their tax advisors,
estate planners and lenders to close $225 million in Community Centered
Properties since completing its IPO in August 2010.

Forward-Looking Statements: Statements included herein that state Whitestone’s
or management's intentions, hopes, beliefs, expectations or predictions of the
future are "forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995, which by their nature, involve known
and unknown risks and uncertainties. Whitestone’s actual results, performance
or achievements could differ materially from those expressed or implied by
these statements. Reference is made to Whitestone’s regulatory filings with
the Securities and Exchange Commission for information or factors that may
impact Whitestone’s performance.

Photos/Multimedia Gallery Available:



Whitestone REIT
Dave Holeman, 713-435-2227
Chief Financial Officer
Bradford Johnson, 713-435-2208
Vice President of Acquisitions
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