Positioning asset to become an 18-hour activity hub that better serves the lifestyle needs of the surrounding community
Meets neighborhood demand for an upscale coffeehouse, premium fitness concepts and executive suites by bringing in Starbucks Reserve, Pvolve, RVE Fitness and CUBExec
HOUSTON, March 10, 2025 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE: WSR), a neighborhood-focused owner and operator of open-air shopping centers in Texas and Arizona, today announced that it has commenced a strategic transformation of the merchandising mix at Davenport Village (“Davenport”) in Austin, Texas that is expected to re-energize the center and strengthen its competitive position within the upscale neighborhoods it serves: Davenport Ranch, Westlake, Rob Roy and Barton Creek. Whitestone is creating a vibrant, 18-hour activity hub that more appropriately serves the lifestyle needs of the area and offers greater optionality for West Austin’s large number of seasoned entrepreneurs and business professionals. To support its vision for Davenport, Whitestone has signed agreements with several exciting and esteemed brands that are expected to drive engagement and traffic at the center throughout the day, including Starbucks Reserve, Pvolve, RVE Fitness and CUBExec.
“Davenport is one of the best located retail properties in the country given the large tech workforce surrounding it, and we believe that by strategically transforming the merchandising mix, we will drive greater activity at the center, better serve the surrounding community and increase the value of the property benefiting our shareholders, tenants and community neighbors. Now is the appropriate time to undertake this effort, as the area has lacked a grouping of businesses that provide comprehensive solutions to the area’s lifestyle needs, and we are excited to deliver a much needed solution. Coffee and fitness are proven traffic drivers with natural synergies that support the rest of Davenport’s merchandising mix, and the executive suites will only strengthen the number of people who frequent the center each day.”
- Dave Holeman, CEO of Whitestone REIT
RESERVE® AND RELAX
Starbucks Reserve®: Starbucks, the world’s largest coffeehouse chain, will be opening a 3,274-square-foot Reserve® location this summer. Unlike traditional Starbucks cafes, Reserve® locations offer educational aspects of coffee roasting and feature coffee bars that serve Starbucks’ premium, high-end Reserve® line of coffee and display hand-painted murals created by local artists.
The Reserve® at Davenport will be designed to spotlight Starbucks’ exquisite Reserve® coffee and showcase its heritage, expertise and dedication to coffee craft through interactive coffee experiences where barista craft is the cornerstone. Moreover, custom artwork developed by Austin-based artists will be featured throughout the space, adding to the ambiance and helping to deepen the connection Austinites have with their beloved city.
THE SOLUTION TO THE PVOLVE-UTION
Pvolve: Actress Jennifer Aniston's favorite low-impact fitness method will open a 3,126-square-foot studio by the spring. Pvolve is a workout method that pairs functional movement with resistance equipment to build strong, mobile bodies, so members can live younger, longer.
The Pvolve Method is supported by a Clinical Advisory Board of doctors, as well as highly credentialed trainers, to offer effective workouts that help you break a sweat, not your body.
RaVE’n ABOUT IT
RVE Fitness: The luxury fitness brand specializes in offering its members an unparalleled fitness and wellness experience. The 7,815-sqaure-foot-space will feature a wellness center and gym, with a variety of classes and services available to enhance overall well-being. From cardio and strength training equipment, to group fitness classes, to yoga and Pilates, to massage therapy, to sauna and steam rooms, to nutrition counseling, they have something for everyone.
RVE Fitness will be operated by Esteban Sandoval and Adam Mata, two Austin-based attorneys who are fiercely committed to health and wellness. The duo decided to open the franchise at Davenport because they were members at the center’s previous gym and enjoyed the ability to work out in their own neighborhood but craved a facility that offered a higher-end experience with top-notch amenities and services.
As such, Sandoval and Mata saw a tremendous opportunity to bring the luxury fitness brand to Davenport and quickly build a large and loyal membership given the center’s strong traffic numbers and strategic location in the heart of tech-rich West Austin. The gym and wellness center will open in the fall and feature private changing rooms and showers.
EXECUTIVE SUITES FOR ENTREPRENEUR MEETS
CUBExec: In an effort to better connect Austin’s seasoned entrepreneurs and growing business community with one another, Whitestone prioritized adding CUBExec, a brand specializing in offering appealing executive suites and professional conference space.
CUBExec will be connected to RVE Fitness for added convenience and on-demand fitness, and several of its executive suites will be available for rent by the first quarter of 2026. The addition of CUBExec provides the workforce in West Austin with an intriguing and convenient option for networking and privacy without having to commute to downtown, a preference born out of the pandemic.
“The additions of Starbucks Reserve®, Pvolve, RVE Fitness and CUBExec are bespoke solutions for this high-end section of West Austin. All of them are very selective in where they open locations, prioritizing growing neighborhoods that are in proximity to a robust and well-educated workforce. What’s unique about Whitestone is our portfolio of holdings is concentrated in markets like this and that is why we can attract upscale brands, which are all about fostering engagement with the neighborhoods they serve and are a strong match with Whitestone’s ethos of creating local connections within our communities.”
- Christine Mastandrea, COO of Whitestone REIT
Davenport, located at 3801 North Capital of Texas Highway, is situated amidst the bustling hub of high-tech companies and is just minutes from the Apple and Tesla campuses. The average household income within a three-mile radius of the center surpasses $247,790 while the average home values total more than $1.28 million. Austin Country Club and St. Stephens Episcopal School are both in close proximity to the property and continue to drive traffic and spur development in the area.
About Whitestone REIT
Whitestone REIT (NYSE: WSR) is a community-centered real estate investment trust (REIT) that acquires, owns, operates, and develops open-air, retail centers located in some of the fastest growing markets in the country: Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio.
Our centers are convenience focused: merchandised with a mix of service-oriented tenants providing food (restaurants and grocers), self-care (health and fitness), services (financial and logistics), education and entertainment to the surrounding communities. The Company believes its strong community connections and deep tenant relationships are key to the success of its current centers and its acquisition strategy. For additional information, please visit the Company's investor relations website.
Forward-Looking Statements
This Report contains forward-looking statements within the meaning of the federal securities laws, including discussion and analysis of our financial condition, pending acquisitions and the impact of such acquisitions on our financial condition and results of operations, anticipated capital expenditures required to complete projects, amounts of anticipated cash distributions to our shareholders in the future and other matters. These forward-looking statements are not historical facts but are the intent, belief or current expectations of our management based on its knowledge and understanding of our business and industry. Forward-looking statements are typically identified by the use of terms such as “may,” “will,” “should,” “potential,” “predicts,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates” or the negative of such terms and variations of these words and similar expressions, although not all forward-looking statements include these words. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements.
Factors that could cause actual results to differ materially from any forward-looking statements made in this Report include: the imposition of federal income taxes if we fail to qualify as a real estate investment trust (“REIT”) in any taxable year or forego an opportunity to ensure REIT status; uncertainties related to the national economy, the real estate industry in general and in our specific markets; legislative or regulatory changes, including changes to laws governing REITs; adverse economic or real estate developments or conditions in Texas or Arizona, Houston and Phoenix in particular, including the potential impact of COVID-19 on our tenants’ ability to pay their rent, which could result in bad debt allowances or straight-line rent reserve adjustments; inflation and increases in interest rates, operating costs or general and administrative expenses; availability and terms of capital and financing, both to fund our operations and to refinance our indebtedness as it matures; decreases in rental rates or increases in vacancy rates; litigation risks; lease-up risks, including leasing risks arising from exclusivity and consent provisions in leases with significant tenants; our inability to renew tenant leases or obtain new tenant leases upon the expiration of existing leases; our inability to generate sufficient cash flows due to market conditions, competition, uninsured losses, changes in tax or other applicable laws; geopolitical conflicts, such as the ongoing conflict between Russia and Ukraine; the need to fund tenant improvements or other capital expenditures out of operating cash flow; and the risk that we are unable to raise capital for working capital, acquisitions or other uses on attractive terms or at all and other factors detailed in the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents the Company files with the Securities and Exchange Commission from time to time.
