Whitestone REIT has entered into a definitive merger agreement to be acquired by funds managed by Ares Management Corporation in an all-cash transaction valued at approximately $1.7 billion.
Under the terms of the agreement, Ares will acquire all outstanding common shares and operating partnership units of Whitestone for $19.00 per share in cash. The offer represents a 12.2% premium to Whitestone’s closing stock price on April 8, 2026, and a 26.5% premium to the unaffected share price prior to earlier reports of a potential sale process.
Whitestone owns a portfolio of 56 convenience-focused retail properties totaling approximately 4.9 million square feet, located in high-growth markets including Phoenix, Austin, Dallas-Fort Worth, Houston, and San Antonio.
The transaction has been unanimously approved by Whitestone’s board of trustees and is expected to close in the third quarter of 2026, subject to shareholder approval and customary closing conditions. The deal is not subject to a financing condition. Upon completion, Whitestone will become a private company and its shares will no longer trade on the New York Stock Exchange.
Support: Advisors on the transaction include BofA Securities and Jones Lang LaSalle Securities for Whitestone, with Bass Berry & Sims serving as legal advisor. For Ares, Citigroup Global Markets is acting as lead financial advisor and financing provider, alongside Morgan Stanley & Co. LLC, with Kirkland & Ellis LLP as legal advisor.
KEY QUOTES:
“We believe Whitestone has shown the value of high-return smaller spaces occupied by a well-diversified mix of tenants. Our investment strategy is designed to allow businesses to fuel connection and convenience within thriving, dynamic communities. We believe this transaction with Ares is a testament to the value that strategy has created for our business and, ultimately, for our shareholders,”
Dave Holeman, CEO of Whitestone REIT
“We are deeply proud of our Whitestone team for their dedication to growing our platform built upon a recognition of the value of neighborhood centers and aligning them with their surrounding communities. We look forward to the continued success of our portfolio as part of Ares’ leading Real Estate business,”
Christine Mastandrea, President and COO of Whitestone REIT
“We are excited to reach this agreement, which delivers significant, immediate and certain value to our shareholders while positioning Whitestone’s assets for continued success,”
Amy Feng, Chair of the Whitestone REIT Board
“Whitestone’s portfolio provides an attractive opportunity to further diversify Ares Real Estate’s footprint with necessity-based retail centers in high-demand, supply-constrained metro regions across Arizona and Texas. This transaction reflects our high conviction in New Economy real estate as today’s consumers are increasingly seeking convenient experiences for their grocery, pharmacy, healthcare, fitness and dining needs. Looking ahead, we are confident in Ares’ ability to support and expand on the Whitestone portfolio and create value for both communities and investors,”
David Roth, Global Head of Real Estate Strategy and Growth in Ares Real Estate
