Whitestone REIT closed on the off-market purchase of The Shops at Pecos Ranch, a 78,767 SF, 100% leased community center in Chandler for $18.95M in an all-cash transaction.

The center has in-place cash flow of approximately $1.6M, or 8.4% of purchase price.

The Shops at Pecos Ranch, a Class-A stabilized community center completed in 2010, is located in a densely populated trade area serving Chandler. Tenants housed on the 10-acre site, at the intersection of Dobson and Germann roads, serve the surrounding Pecos Ranch and Vineyards neighborhoods.

Traffic is enhanced by the property’s 1-mile proximity to Intel Corporation’s nearby 682-acre campus with approximately 11,000 employees, as well as the developing office submarket surrounding the coming Intel semiconductor manufacturing plant projected for completion in 2013.

The Shops at Pecos Ranch are close to Whitestone’s other Southeast Valley centers, Village Square at Dana Park and Gilbert Tuscany Village.

“The tenants include four popular restaurants with individual outdoor dining patios, that have each established a lunch crowd pulling from nearby employers, and draw additional traffic for evening and weekend business from the surrounding neighborhoods,” said James C. Mastandrea, Whitestone’s chairman and CEO.

“Tenant mix also includes other service tenants including salons, medical and educational tenants – our small space tenant mix formula for our community centered property business model.”

Whitestone now owns more than 1.2 MSF of lease space in Metro Phoenix in 15 community centers and future development land parcels, strategically located in high traffic neighborhoods, including The Shops at Pecos Ranch.

The other Centers include Ahwatukee Plaza, The Citadel, Desert Canyon, Fountain Square, Gilbert Tuscany Village, MarketPlace at Central, Paradise Plaza, Pima Norte, The Pinnacle of Scottsdale, The Shops at Pinnacle Peak, Terravita Marketplace and Village Park at Dana Square as well as future development land parcels at The Pinnacle of Scottsdale and at Village Park at Dana Square.

All purchases were off market and priced at a discount to current replacement cost and have a value-add component. Each of these community centers is in a stabilized neighborhood with strong demographics, and provides essential services to support local communities.

Currently 100% leased with 19 tenants, the Shops at Pecos Ranch are home to Crowded House, the largest tenant, with 16,133 SF of lease space; and Phoenix Children’s Academy, with 10,685 SF of space. Other small-space tenants with 5,000 SF or less, include a mix of medical/health care and convenience service providers ranging from chiropractitioners, dry cleaner, yoga and fitness studios to tax preparation.

A variety of popular casual dining venues range from Italian, Chinese to Mexican, as well as breakfast, pizza and sandwich offerings.