Whitestone REIT Commences Redevelopment at Lion Square in Houston’s Asiatown District

Rhea-AI Summary

Whitestone REIT (NYSE: WSR) has initiated a strategic redevelopment of Lion Square in Houston's Asiatown District. The project aims to transform the Sun Wing Supermarket-anchored center into a cultural hub serving the Asian community.

The 117,592-square-foot property, which attracts over 2 million visitors annually, will undergo significant upgrades including:

• Modern aesthetics blending Chinese and Vietnamese architectural influences
• Enhanced greenery and sustainable irrigation systems
• Improved security and lighting
• Better walkability and connectivity aligned with Houston's Walkable Places program

The center, located at Bellaire Boulevard and Wilcrest Drive, houses notable tenants like Crown Seafood Restaurant, KPOT Korean BBQ, and Thuan Kieu Com Tam. Additionally, Whitestone is renovating a 5,100-square-foot pad site to incorporate Asian elements for a future Asian-themed restaurant.

Positive

• Strategic location in high-barrier-to-entry market with land availability
• Property benefits from rising market rents in the district over the past decade
• Strong existing foot traffic with 2+ million annual visitors
• Redevelopment aligned with area's demographic needs and market trends

Negative

• None.

Insights

Commercial Real Estate Analyst

Whitestone's strategic Lion Square redevelopment enhances cultural relevance and market positioning in Houston's growing Asiatown district with strong fundamentals.

Whitestone REIT's redevelopment of Lion Square represents a strategic asset enhancement initiative in Houston's Asiatown District, focusing on strengthening the cultural alignment and market positioning of this 117,592-square-foot neighborhood center. The property already demonstrates solid fundamentals, drawing over 2 million annual visitors and featuring an Asian supermarket anchor alongside complementary tenants like Crown Seafood Restaurant (rated Houston's top dim sum restaurant).

The redevelopment's focus on integrating traditional Chinese and Vietnamese architectural elements while enhancing walkability, security, and sustainability features demonstrates Whitestone's market-responsive approach to property management. This culturally-attuned strategy appears well-aligned with the demographics of Houston's Asiatown district, which boasts the second-largest concentration of Asian-Americans nationally.

From a market perspective, the timing appears opportune. Market rents in the district have risen significantly over the past decade due to continuous area improvements and low vacancy rates. The property's proximity to the $1 billion Park Eight Place development (less than a mile away on Bellaire Boulevard) may create positive spillover effects for the submarket.

The renovation of a 5,100-square-foot pad site for an Asian-themed restaurant further reinforces the property's cultural positioning. While specific redevelopment costs aren't disclosed, the initiative demonstrates management's commitment to proactive asset management within their Texas and Arizona portfolio.

For Whitestone REIT investors, this redevelopment represents a positive indicator of management's approach to maintaining competitive properties in high-barrier-to-entry locations. By enhancing the center's aesthetic appeal, functionality, and cultural relevance, Whitestone is positioning this asset to potentially capitalize on continued strength in Houston's specialty retail market.

HOUSTON, April 23, 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 redevelopment at Lion Square in Houston’s Asiatown – part of the International Management District – that will transform the Sun Wing Supermarket-anchored center into a vibrant and meaningful cultural hub that pays homage to the city’s expansive Asian community. Whitestone has engaged Michael Hsu Office of Architecture to upgrade the property’s design and curb appeal by integrating modern aesthetics with traditional Chinese and Vietnamese architectural influences to create a more welcoming and meaningful destination for the area’s large Asian contingent.

In addition to architectural and curb appeal upgrades, which will result in new greenery and sustainable irrigation systems along with security and lighting enhancements, the redevelopment of Lion Square will focus on enhancing the property’s walkability and connectivity to foster community engagement and better align with Houston’s Walkable Places. Walkable Places is a city-wide program launched in 2020 to promote walkability, biking and transit use through architectural design standards that create pedestrian-friendly environments. Houston’s first developer-initiated development to earn the Walkable Places designation, Park Eight Place – a $1 billion transformational 70-acre mixed-use project centered on healthier lifestyles is currently under construction on the former Halliburton campus – is less than a mile east on Bellaire Boulevard.

“We are thrilled to commence our redevelopment plan at Lion Square to ensure the center more appropriately aligns with the needs and expectations of the area’s distinguished Asian community,” stated Dave Holeman, CEO of Whitestone REIT. “With all the investment activity currently being undertaken in Asiatown, we felt that solidifying the property’s competitive standing made strategic sense to ensure it continues to stand out and supports the activity, energy, and mission of the surrounding community. By investing in this center and improving its aesthetics, walkability, and functionality, we are in position to drive continued strong foot traffic and repeat sales while enhancing its appeal as a neighborhood town square and vibrant cultural hub.”

In addition to benefiting from high barriers-to-entry like limited land availability for development and impressive growth drivers such as attracting more than 9 million visitors annually, Houston’s Asiatown possesses many of the fundamental characteristics Whitestone prioritizes as part of its investment criteria. Market rents in the district have risen significantly over the past decade largely due to continuous area improvements and low vacancy rates, and Whitestone’s redevelopment of Lion Square is intended to capitalize on these trends and further boost the center’s revenue, underlying value and return potential.

“There is a tremendous sense of pride and authenticity that permeates throughout Asiatown and we are honored to have a role in serving this community, which boasts the second largest concentration of Asian-Americans in the country,” commented Christine Mastandrea, President and COO of Whitestone. “The redevelopment plan we designed for Lion Square was thoughtfully-conceived with critical input from architects and planners who are fully ingrained in the Asian culture and are deeply aware of how meaningful this center is to this neighborhood. It’s a highly rewarding project for us, and we look forward to delivering an end-design that truly encapsulates the community’s spirit.”

The 117,592-square-foot Lion Square is situated at the intersection of Bellaire Boulevard and Wilcrest Drive and draws more than 2 million visitors each year from across the metro area and neighboring Texas cities. In addition to the Asian-focused Sun Wing Supermarket, the center is home to numerous other retailers and restaurants that are intended to appeal to the Asian community, including Crown Seafood Restaurant, rated the top dim sum restaurant in Houston, Sam’s Spa & Nail Supply, KPOT Korean BBQ and Hot Pot, and Thuan Kieu Com Tam, among others.

Whitestone is also in the process of renovating the 5,100-square-foot pad site of the corner of Bellaire Boulevard and Wilcrest Drive to incorporate Asian elements into the building’s facade. Upon completion, the space will house an Asian-themed restaurant.

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.

Contacts:

For Whitestone REIT – Investors
David Mordy
(713) 435-2219
ir@whitestonereit.com

For Whitestone REIT – Media:
Matthew Chudoba
WhitestonePR@icrinc.com 

FAQ

What improvements are planned for Whitestone REIT's Lion Square redevelopment in Houston?

The redevelopment includes modern aesthetics with Chinese and Vietnamese influences, new greenery, sustainable irrigation, enhanced security, lighting improvements, and better walkability features.

How many visitors does WSR's Lion Square shopping center attract annually?

Lion Square attracts more than 2 million visitors each year from the metro area and neighboring Texas cities.

What is the total square footage of WSR's Lion Square property in Houston's Asiatown?

Lion Square is a 117,592-square-foot shopping center located at the intersection of Bellaire Boulevard and Wilcrest Drive.

Who are the major tenants at WSR's Lion Square shopping center?

Major tenants include Sun Wing Supermarket (anchor), Crown Seafood Restaurant, Sam's Spa & Nail Supply, KPOT Korean BBQ and Hot Pot, and Thuan Kieu Com Tam.