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Ares Management Corporation has agreed to take Whitestone REIT private in an all-cash transaction valued at approximately $1.7 billion. Under a definitive merger agreement between Whitestone and certain Ares Real Estate funds, Ares will acquire all outstanding Whitestone common shares and operating partnership units. Whitestone, based in Houston, had disclosed in early March that it was exploring a sale.
Whitestone focuses on convenience-oriented retail centers and operates 56 such properties across major markets in Texas and Arizona. The company’s portfolio totals about 4.9 million square feet and is concentrated in the Dallas-Fort Worth, Houston, San Antonio and Phoenix metro areas. These centers are positioned to serve day-to-day consumer needs within established communities.
Whitestone CEO Dave Holeman said the company’s approach has been to emphasize smaller, high-return spaces leased to a broad mix of tenants. He described Whitestone’s investment strategy as enabling businesses to foster connection and convenience in dynamic communities, and characterized the transaction with Ares as a recognition of the value that strategy has created for the business and its shareholders.
From Ares’ perspective, the deal advances a push into necessity-based retail. David Roth, global head of real estate strategy and growth at Ares Real Estate, said Whitestone’s portfolio offers an attractive opportunity to further diversify Ares Real Estate’s footprint. He cited the appeal of necessity-driven retail centers in high-demand, supply-constrained metro regions across Arizona and Texas. Roth added that the acquisition aligns with Ares’ conviction in what it describes as New Economy real estate, serving consumers seeking convenient access to uses such as grocery, pharmacy, healthcare, fitness and dining.
The agreed purchase price is $19 per Whitestone share or operating partnership unit. That figure represents a 12.2% premium to Whitestone’s closing stock price on April 8, 2026, the last full trading day before the transaction was announced. It also reflects a 26.5% premium to the company’s unaffected share price prior to a March 5, 2026 Reuters report that disclosed Whitestone had engaged advisors to evaluate a possible sale.
Several financial and legal advisors are involved on both sides of the transaction. BofA Securities is serving as Whitestone’s financial advisor and has delivered a fairness opinion to its Board of Trustees, while Jones Lang LaSalle Securities is also acting as a financial advisor to the REIT. Bass Berry & Sims is providing legal counsel to Whitestone. On the Ares side, Citigroup Global Markets Inc. is acting as lead financial advisor and financing provider, with Morgan Stanley also serving as a financial advisor. Kirkland & Ellis LLP is advising Ares as legal counsel. A photo released with the announcement depicts Whitestone’s Ashford Village property in Houston.
The post Ares Management to Take Whitestone REIT Private in $1.7 Billion All-Cash Deal appeared first on CRE Market Beat.
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