Whitestone REIT Commences Transformation of Merchandising Mix at Davenport Village in Austin, Texas
Whitestone REIT (NYSE: WSR) has initiated a strategic transformation of its Davenport Village property in Austin, Texas, aiming to create an 18-hour activity hub. The company has secured agreements with several premium brands including Starbucks Reserve (3,274 sq ft), Pvolve (3,126 sq ft), RVE Fitness (7,815 sq ft), and CUBExec.
The property, located at 3801 North Capital of Texas Highway, serves affluent neighborhoods with average household incomes exceeding $247,790 within a three-mile radius and average home values over $1.28 million. The location is strategically positioned near Apple and Tesla campuses, Austin Country Club, and St. Stephens Episcopal School.
Starbucks Reserve will open this summer, Pvolve by spring, RVE Fitness in fall, and CUBExec's executive suites by Q1 2026. The transformation aims to better serve the area's large tech workforce and business professionals while increasing property value for shareholders.
Whitestone REIT (NYSE: WSR) ha avviato una trasformazione strategica della sua proprietà Davenport Village ad Austin, Texas, con l'obiettivo di creare un centro di attività di 18 ore. L'azienda ha stipulato accordi con diversi marchi premium tra cui Starbucks Reserve (3.274 piedi quadrati), Pvolve (3.126 piedi quadrati), RVE Fitness (7.815 piedi quadrati) e CUBExec.
La proprietà, situata al 3801 North Capital of Texas Highway, serve quartieri benestanti con un reddito familiare medio superiore a $247.790 entro un raggio di tre miglia e valori medi delle case superiori a $1,28 milioni. La posizione è strategicamente posizionata vicino ai campus di Apple e Tesla, all'Austin Country Club e alla St. Stephens Episcopal School.
Starbucks Reserve aprirà quest'estate, Pvolve in primavera, RVE Fitness in autunno e le suite executive di CUBExec entro il primo trimestre del 2026. La trasformazione mira a servire meglio il grande personale tecnologico e i professionisti aziendali della zona, aumentando al contempo il valore della proprietà per gli azionisti.
Whitestone REIT (NYSE: WSR) ha iniciado una transformación estratégica de su propiedad Davenport Village en Austin, Texas, con el objetivo de crear un centro de actividades de 18 horas. La empresa ha asegurado acuerdos con varias marcas premium, incluyendo Starbucks Reserve (3,274 pies cuadrados), Pvolve (3,126 pies cuadrados), RVE Fitness (7,815 pies cuadrados) y CUBExec.
La propiedad, ubicada en 3801 North Capital of Texas Highway, atiende a vecindarios adinerados con ingresos familiares promedio que superan los $247,790 dentro de un radio de tres millas y valores promedio de vivienda que superan los $1.28 millones. La ubicación está estratégicamente situada cerca de los campus de Apple y Tesla, del Austin Country Club y de la St. Stephens Episcopal School.
Starbucks Reserve abrirá este verano, Pvolve en primavera, RVE Fitness en otoño y las suites ejecutivas de CUBExec para el primer trimestre de 2026. La transformación tiene como objetivo atender mejor a la gran fuerza laboral tecnológica y a los profesionales de negocios de la zona, al tiempo que aumenta el valor de la propiedad para los accionistas.
Whitestone REIT (NYSE: WSR)는 텍사스 오스틴의 Davenport Village 부동산에 대한 전략적 변화를 시작하여 18시간 활동 허브를 만드는 것을 목표로 하고 있습니다. 이 회사는 Starbucks Reserve (3,274 평방피트), Pvolve (3,126 평방피트), RVE Fitness (7,815 평방피트) 및 CUBExec를 포함한 여러 프리미엄 브랜드와 계약을 체결했습니다.
이 부동산은 3801 North Capital of Texas Highway에 위치해 있으며, 3마일 반경 내에서 평균 가구 소득이 $247,790을 초과하고 평균 주택 가치가 $1.28 백만이 넘는 부유한 지역사회를 제공합니다. 이 위치는 Apple과 Tesla 캠퍼스, Austin Country Club, St. Stephens Episcopal School 근처에 전략적으로 위치해 있습니다.
Starbucks Reserve는 이번 여름에 개장하고, Pvolve는 봄에, RVE Fitness는 가을에, CUBExec의 임원 스위트는 2026년 1분기까지 개장할 예정입니다. 이 변화는 지역의 대규모 기술 인력과 비즈니스 전문가를 더 잘 지원하고 주주를 위한 자산 가치를 높이는 것을 목표로 하고 있습니다.
Whitestone REIT (NYSE: WSR) a lancé une transformation stratégique de sa propriété Davenport Village à Austin, Texas, visant à créer un pôle d'activités de 18 heures. L'entreprise a sécurisé des accords avec plusieurs marques premium, y compris Starbucks Reserve (3 274 pieds carrés), Pvolve (3 126 pieds carrés), RVE Fitness (7 815 pieds carrés) et CUBExec.
La propriété, située au 3801 North Capital of Texas Highway, dessert des quartiers aisés avec un revenu familial moyen dépassant $247 790 dans un rayon de trois miles et des valeurs immobilières moyennes supérieures à $1,28 million. L'emplacement est stratégiquement situé à proximité des campus d'Apple et de Tesla, du Austin Country Club et de l'école épiscopale St. Stephens.
Starbucks Reserve ouvrira cet été, Pvolve au printemps, RVE Fitness à l'automne et les suites exécutives de CUBExec d'ici le premier trimestre 2026. La transformation vise à mieux servir la grande main-d'œuvre technologique et les professionnels des affaires de la région tout en augmentant la valeur de la propriété pour les actionnaires.
Whitestone REIT (NYSE: WSR) hat eine strategische Transformation seiner Davenport Village-Immobilie in Austin, Texas, eingeleitet, mit dem Ziel, ein 18-Stunden-Aktivitätszentrum zu schaffen. Das Unternehmen hat Vereinbarungen mit mehreren Premium-Marken getroffen, darunter Starbucks Reserve (3.274 Quadratfuß), Pvolve (3.126 Quadratfuß), RVE Fitness (7.815 Quadratfuß) und CUBExec.
Die Immobilie, die sich an der 3801 North Capital of Texas Highway befindet, bedient wohlhabende Stadtteile mit einem durchschnittlichen Haushaltseinkommen von über $247.790 im Umkreis von drei Meilen und einem durchschnittlichen Immobilienwert von über $1,28 Millionen. Die Lage ist strategisch günstig in der Nähe der Apple- und Tesla-Campus, des Austin Country Club und der St. Stephens Episcopal School positioniert.
Starbucks Reserve wird in diesem Sommer eröffnen, Pvolve im Frühjahr, RVE Fitness im Herbst und die Executive Suiten von CUBExec bis zum ersten Quartal 2026. Die Transformation zielt darauf ab, die große Tech-Arbeitskräfte und Geschäftsexperten der Region besser zu bedienen und gleichzeitig den Immobilienwert für die Aktionäre zu steigern.
- Strategic location near major tech campuses (Apple, Tesla) in high-income area
- Secured premium tenants including Starbucks Reserve, Pvolve, RVE Fitness, and CUBExec
- Property serves affluent demographic with average household income of $247,790
- Transformation expected to increase property value and drive greater center activity
- Extended timeline for full tenant occupancy (Q1 2026)
- Significant space allocation to fitness concepts may create tenant concentration risk
Insights
Whitestone's strategic transformation of Davenport Village represents a textbook example of value-add asset management in the retail REIT sector. By pivoting the merchandising mix toward premium lifestyle-oriented tenants, management is executing a proven playbook for maximizing property value in high-demographic trade areas.
The tenant selection demonstrates sophisticated market positioning. Securing Starbucks Reserve rather than a standard Starbucks location creates a destination experience that typically generates higher dwell time and spillover traffic to adjacent tenants. The complementary fitness concepts (Pvolve and RVE Fitness) create morning and evening traffic patterns that benefit surrounding retailers, while CUBExec's executive suites add daytime population density.
This transformation aligns perfectly with the surrounding trade area's exceptional demographics ($247,790 average household income and $1.28 million average home values within 3 miles). The property's location near major tech employers positions it ideally to capture high-disposable-income consumers seeking convenience and premium experiences.
For shareholders, this illustrates management's focus on operational improvement of existing assets rather than just portfolio expansion. Though specific financial projections aren't provided, similar merchandising transformations typically yield 15-20% increases in effective rent as tenant quality improves. The staggered opening timeline (summer 2025 through Q1 2026) suggests rental income benefits will materialize gradually, with full stabilization likely by mid-2026.
Whitestone's merchandising transformation at Davenport Village demonstrates exceptional market-to-tenant matching. The trade area's affluent demographic profile ($247,790 average household income) perfectly supports premium experiential retail concepts like Starbucks Reserve and boutique fitness offerings.
The strategic focus on creating an "18-hour activity hub" directly addresses a critical gap in West Austin's retail landscape. Despite the area's tech wealth and professional population density, it has lacked integrated lifestyle centers that combine premium food & beverage, fitness, and professional workspace solutions. This positions Davenport Village to capture pent-up demand from an underserved high-value consumer base.
The tenant mix shows sophisticated psychographic targeting beyond just income metrics. The selection of Pvolve (known for its celebrity association with Jennifer Aniston) and the premium RVE Fitness concept appeals directly to the wellness-focused, status-conscious consumers prevalent in Westlake and Barton Creek. Similarly, CUBExec addresses the growing demand for flexible, premium workspace alternatives closer to residential neighborhoods – a trend that accelerated post-pandemic and shows no signs of reversing.
The property's location near Apple and Tesla campuses provides a sustained customer pipeline from high-income professionals. By transforming Davenport into a comprehensive lifestyle destination rather than a conventional retail center, Whitestone is future-proofing this asset against e-commerce pressures while maximizing its relevance to the surrounding affluent communities.
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
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
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