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Shares of Whitestone REIT WSR closed 5.2% higher on May 8, 2025, at market close, after the retail REIT announced the acquisition of San Clemente, a restaurant-anchored retail center, spanning 31,832 square feet, in Davenport, Austin, TX, as investors cheered this purchase.
The move comes as part of the company’s growth strategy to bolster its portfolio with the center’s strong dynamics and its retailer relationships in the upscale neighborhoods it serves — Davenport Ranch, Westlake, Rob Roy and Barton Creek.
Located at the intersection along Loop 360, in the vicinity of the Apple and Tesla campuses and many other technology companies, San Clemente is the fifth addition to Whitestone’s portfolio of neighborhood shopping centers in Texas’s capital city, benefiting from strong inbound migration and a booming tech sector. The tenant roster includes names like Fresa’s, a local Mexican specialty, which anchors the property, Iron Fitness, a training and fitness facility and Greenlake Energy, an energy technology company.
The center offers unique advantages, serving an affluent population with an average household income exceeding $280,000, strict development restrictions curbing oversupply and efficient connectivity, with more than 55,000 vehicles per day in support traffic.
According to Whitestone REIT COO, Christine Mastandrea, “This center has all of the dynamics we look for, including strong surrounding schools, a community with a robust job market and upwardly mobile families and the potential to actively remerchandise the center.”
WSR in a Nutshell
Whitestone REIT is a fully integrated real estate investment trust that acquires, owns, manages, develops and redevelops high-quality, internet-resistant neighborhood, community and lifestyle retail centers. Whitestone's properties are principally located in Austin, Dallas-Fort Worth, Houston, San Antonio, TX, and Phoenix, AZ.
The acquisition of San Clemente will boost its portfolio in line with its strategy of enhancing its asset base with properties enjoying a solid trade area. Strategically located within a three-mile radius of Pennybacker Bridge and Red Bud Trail, the center will benefit from the two main river crossings in the Austin area, which bound all the vehicles across the Colorado River to the Westlake Drive and Loop 360 thoroughfares. The upcoming Four Seasons development, with around 200 high-end residences, is also likely to drive strong footfall.
However, the market is witnessing a shift in retail shopping from brick-and-mortar stores to Internet sales. This is expected to adversely impact the market share for brick-and-mortar stores like WSR. Moreover, market uncertainties arising from policy shifts, economic volatility and anticipations of high inflation remain major concerns.