Ares Real Estate Funds to Acquire Whitestone REIT in $1.7 Billion All-Cash Deal
Shareholders approved the $19-a-share buyout, giving Ares a portfolio of 56 open-air retail centers across fast-growing Texas and Arizona markets.
Whitestone REIT (NYSE: WSR) shareholders approved the company's all-cash acquisition by certain Ares Real Estate funds, clearing the final major hurdle for a transaction valued at approximately $1.7 billion. The deal, expected to close on or about July 14, 2026, will take the Houston-based retail REIT private.
Under the terms of the merger agreement, holders of Whitestone common shares and operating partnership units will receive $19.00 for each share or unit. The purchase price represented a 12.2% premium to Whitestone's closing stock price on April 8, 2026, the last full trading day before the deal was announced, and a 26.5% premium to the unaffected share price prior to a March 5, 2026 Reuters report that the company had engaged advisors to explore a sale.
Ares said the acquisition provides an opportunity to diversify its real estate footprint with necessity-based retail centers in high-demand, supply-constrained metro regions across Arizona and Texas. David Roth, Global Head of Real Estate Strategy and Growth in Ares Real Estate, said the transaction reflects the firm's "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".
Whitestone's portfolio comprises 56 open-air, convenience-focused retail properties totaling approximately 4.9 million square feet in Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio. The centers are merchandised with a mix of service-oriented tenants providing food, self-care, services, education and entertainment to surrounding communities. Whitestone CEO Dave Holeman said the company "has shown the value of high-return smaller spaces occupied by a well-diversified mix of tenants" and called the Ares deal "a testament to the value that strategy has created".
The transaction is not subject to a financing condition. Upon completion, Whitestone shares will be de-registered under the Securities Exchange Act and will no longer trade on the NYSE. BofA Securities served as Whitestone's financial advisor and provided a fairness opinion to the board, with Jones Lang LaSalle Securities also advising; Citigroup acted as lead financial advisor and financing provider to Ares, with Morgan Stanley also advising.
The deal adds to a wave of take-private transactions in the REIT sector. In April 2026, Blue Owl Real Estate Capital affiliates agreed to acquire Sila Realty Trust, a healthcare-focused net-lease REIT, in an all-cash transaction valued at approximately $2.4 billion. Both transactions underscore private capital's appetite for income-producing real estate portfolios in sectors benefiting from durable demand tailwinds.