Whitestone REIT (NYSE:WSR) closes on the sale of three Houston non-core properties owned in a joint venture for $39.7M.
The sale represents a capitalization rate of 6.8% on TTM net operating income and the company expects to record a gain on sale of ~$14M in 4Q19, and net proceeds received were $12.3M, after closing costs and repayment of debt.
Whitestone expects to receive an $11M cash distribution from its stake in the joint venture as a result of the sale, and will recycle the capital to invest in existing assets including developments and redevelopments.