{"id":4670,"date":"2021-12-08T11:48:18","date_gmt":"2021-12-08T17:48:18","guid":{"rendered":"https:\/\/1reason.com\/re\/whitestone-reit-teams-with-fast-growing-restaurateurs-to-make-second-generation-dining-spots-flourish\/4670\/"},"modified":"2021-12-09T05:48:18","modified_gmt":"2021-12-09T11:48:18","slug":"whitestone-reit-teams-with-fast-growing-restaurateurs-to-make-second-generation-dining-spots-flourish","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/whitestone-reit-teams-with-fast-growing-restaurateurs-to-make-second-generation-dining-spots-flourish\/4670\/","title":{"rendered":"Whitestone REIT Teams With Fast-Growing Restaurateurs to Make Second-Generation Dining Spots Flourish"},"content":{"rendered":"
In the case of restaurants, that means selecting restaurants that offer an exciting menu and dining experience which complements the preferred dining tastes and experiences of each property\u2019s neighboring communities. <\/p>\n

\u201cFood connects people,\u201d said James Mastandrea, Whitestone\u2019s chairman and CEO. \u201cGreat restaurants make for great local connections.\u201d<\/p>\n

Those connections are important because restaurants make up 18% of Whitestone\u2019s gross leasable area and pay a 35% premium rental rate per square foot compared to Whitestone\u2019s overall rental rate per square foot, resulting in restaurant make up 24% of its average base rent \u2014 more than any other tenant category. Grocers rank No. 2. Both categories are among the biggest drivers of traffic for retail centers.<\/p>\n

While some churn is normal even in the healthiest of centers, the COVID-19 pandemic led to an increase nationally. Of the restaurant spaces that opened up in Whitestone\u2019s properties during the pandemic, many of those spots were quickly backfilled by restaurateurs who were attracted to the desirable locations and high traffic count of Whitestone\u2019s centers.<\/p>\n

With its focus on leasing heavily to fast-growing, well-capitalized local and regional restaurants, Whitestone was not impacted to the degree some other REITs were during the current pandemic. That\u2019s because those restaurateurs were able to pivot immediately when dining rooms were closed for weeks \u2014 or even months \u2014 in some areas. Tweaks included adding impromptu drive-up lanes and expanded outdoor dining areas.<\/p>\n

\u201cThe important thing about restaurants is that you have to make sure they\u2019re built right initially,\u201d Mastandrea said. \u201cWe\u2019re heavily focused on that because it’s very expensive. That way, when a restaurant goes out, the likelihood of filling it with a new concept is high. It’s less burdensome for the landlord and for the tenant.\u201d<\/p>\n

Restaurateurs who select second-generation spots experience a number of benefits, including getting prime space in established centers and being able to save hundreds of thousands of dollars on buildout costs related to the kitchen and dining area, according to Modern Restaurant Management, an industry publication.<\/p>\n

Some of the hottest restaurant categories right now, Mastandrea says, include small plates, healthy dishes, Ramen, Korean barbecue, and Nashville hot chicken. High-end bars with mixologists have become quite popular, as well.<\/p>\n

\u201cI love how our entrepreneurs were able to flex so quickly during COVID,\u201d Mastandrea said. \u201cThe larger restaurant chains were closed, and the local guys figured out how to be open. All of a sudden you could buy gallon margaritas. The local guys got ahead of the game by being able to adjust quickly to adapt and survive. It strengthened their business models.\u201d<\/p>\n

In spots that did turn over, some are already open with new tenants while others are rapidly approaching their debuts. Here\u2019s a look at some second-generation restaurants that have been recently announced at Whitestone\u2019s properties in Arizona and Texas.<\/p>\n

Hudson House, Las Colinas<\/strong><\/p>\n

Vandelay Hospitality Group was looking to expand its Hudson House concept and needed the right spot. The Dallas-based company found it at Whitestone\u2019s Las Colinas Village.<\/p>\n

The restaurant, which boasts that it serves \u201cthe world\u2019s coldest martini,\u201d offers an assortment of \u201cstraightforward and timeless dishes,\u201d such as its trademark avocado dip, cheeseburgers with special Hudson sauce and chicken parmesan.<\/p>\n

Hudson House is taking over a 5,200-square-foot space previously occupied by another restaurant, which \u201cmade it easier because the space already had a kitchen,\u201d said Vandelay\u2019s Vice President of Marketing and Communications Lauren Land.<\/p>\n

\u201cHudson House appeals to many audiences and works to provide an approachable experience where guests can come with their family and return for a date night or night cap,\u201d Land said. \u201cWith that in mind, we have been looking to bring it to the suburban Las Colinas neighborhood of Irving for quite some time.\u201d<\/p>\n

While a number of restaurateurs pressed the pause button on growth during the pandemic, Vandelay Chief Operating Officer Jon Peck said his company did the exact opposite.<\/p>\n

\u201cAs a real estate-driven hospitality group, we focused our time in 2020 hiring outstanding talent, which provided us with the foundation we need to grow Vandelay Hospitality Group strategically in the years ahead,\u201d he said.<\/p>\n

Learn more about Hudson House by visiting www.hudsonhousehp.com<\/a>.<\/p>\n

Prey, Houston<\/strong><\/p>\n

A prime spot at one of Houston\u2019s busiest intersections \u2014 just steps from the Galleria \u2014 was too good for the founders of Prey, a new restaurant concept, to pass up.<\/p>\n

\u201cThe area fits perfectly because of everything I want to do,\u201d co-owner Justin Kent said. \u201cIt\u2019s a prestigious part of town. I just felt BLVD Place would be perfect for this concept.\u201d<\/p>\n

With both owners being from Louisiana, Prey features a heavy assortment of Acadian dishes, including oxtail surf and turf and stuffed Cajun salmon. The restaurant\u2019s signature dish is the Filet King: a ribeye or tomahawk covered with scallops, crab and signature Prey sauce.<\/p>\n

Landing in a second-generation spot helped accelerate the restaurant\u2019s opening considerably, co-owner Ty Charles said.<\/p>\n

\u201cIt makes things easier, especially the whole process with permitting and inspections,\u201d she said. \u201cIt\u2019s way easier than doing a whole new buildout. Everything is already ready for you there. You just have to get everything switched over.\u201d<\/p>\n

Outside of the kitchen, the restaurant space has been dramatically remodeled, offering diners a one-of-a-kind experience resembling a jungle.<\/p>\n

\u201cWhen people walk in, they’re like, \u2018Wow! This doesn\u2019t look like anything we\u2019ve seen before\u2019,\u201d Charles said. \u201cOnce they taste the food, they’ll be wowed for sure.\u201d<\/p>\n

Learn more about Prey by visiting www.preyhouston.com<\/a>.<\/p>\n

Thompson 105, Scottsdale<\/strong><\/p>\n

Richard Federico, a seasoned, nationally known restaurateur, swore he was retired, but his persistent friend \u2014Tim Donmoyer, an area resident who drove by the chosen center every day for years \u2014 had other ideas.<\/p>\n

Federico, who previously led the P.F. Chang\u2019s chain, was talked into helping open Thompson 105 in Scottsdale\u2019s Desert Canyon shopping center. It\u2019s expected to debut in January.<\/p>\n

\u201cI kept saying I really don’t want to do a restaurant,\u201d he said with a laugh. \u201cBut my friend was persistent to the point I finally said I’d go take a look at the spot he found.\u201d<\/p>\n

During his time in the restaurant industry, Federico oversaw more than 600 openings, so he knew firsthand the benefits of securing a second-generation spot. Still, he plans to invest heavily to make a great space even better.<\/p>\n

\u201cOur goal is to give them a fun and cool place in their neighborhood,\u201d he said. \u201cWe’re going to take full advantage of the location. We\u2019re increasing the bar size\u2026you name it.\u201d<\/p>\n

The restaurant, which offers views of nearby Thompson Peak, will feature a menu that leans heavily on dishes from a wood-fired grill and rotisserie, such as rotisserie chicken and rotisserie prime rib, as well as some burgers, pastas and salads.<\/p>\n

\u201cThe menu will touch everything you’d be looking for in a polished, casual environment,\u201d Federico said.<\/p>\n

As coronavirus restrictions are being reduced or eliminated in many parts of the country, Federico says it\u2019s an ideal time to open a new restaurant. \u201cPeople are genuinely flocking back into restaurants,\u201d he said. \u201cVolumes have probably never been higher. Most everyone I talk to is well above their 2019 numbers.\u201d<\/p>\n

Learn more about Thompson 105 by visiting www.thompson105.com<\/a>.<\/p>\n

Gabriella\u2019s Contemporary American Cuisine, Scottsdale<\/strong><\/p>\n

When chef Anthony and Anna Barr set out to open a neighborhood restaurant, his search for a site started and ended at Whitestone\u2019s The Mercado at Scottsdale Ranch.<\/p>\n

\u201cBeing the neighborhood restaurant is just amazing,\u201d he said. \u201cWe do a lot of great things here. We can pack the restaurant. The people love the food.\u201d<\/p>\n

Dishes on the menu include beef Wellington. But \u201cour restaurant is not only about the food,\u201d Anthony said. \u201cNamed in honor of our daughter, Gabriella, it’s about relationships with the people. The food is almost secondary. It\u2019s all about creating an extension of home experience for our guests.\u201d<\/p>\n

Selecting a second-generation space helped speed things up considerably, while still allowing Barr to put his own mark on the restaurant\u2019s interior.<\/p>\n

\u201cWhen we designed our restaurant, we wanted it to feel like you were coming into our home,\u201d he said. \u201cAn atmosphere that made you feel welcome from our family to yours.\u201d<\/p>\n

Working with the Whitestone team made things easy, start to finish, according to Barr.<\/p>\n

\u201cWhitestone has been great for us,\u201d he said. \u201cAny time I’ve needed anything, they\u2019re always there. It’s been amazing. I feel like a real person. I’m a part of the Whitestone family and they want to see me succeed.\u201d<\/p>\n

Learn more about Gabriella\u2019s Contemporary American Cuisine by visiting www.gabriellasscottsdale.com<\/a>.<\/p>\n

About Whitestone REIT<\/strong><\/p>\n

Whitestone is a community-centered shopping center REIT that acquires, owns, manages, develops, and redevelops high-quality neighborhood centers primarily in the largest, fastest-growing and most affluent markets in the Sunbelt.<\/p>\n

Whitestone creates communities that thrive through creating local connections between consumers in the surrounding communities and a well-crafted mix of primarily entrepreneurial local, regional and national tenants that provide daily necessities, needed goods and services, entertainment, and experiences.<\/p>\n

Whitestone (NYSE: WSR) pays monthly dividends to its shareholders and it has consistently done so for more than 15 years. Whitestone\u2019s strong balanced and managed capital structure provides stability and flexibility for growth and positions Whitestone to perform well through economic cycles. For additional information, please visit www.whitestonereit.com<\/a>.<\/p>\n

Safe harbor statement<\/strong><\/p>\n

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the \u201cSecurities Act\u201d) and Section 21E of the Securities Exchange Act of 1934, as amended (the \u201cExchange Act\u201d). The Company intends for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “should,” “could,” “would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” or similar expressions or their negatives, as well as statements in future tense. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance and our actual results could differ materially from those set forth in the forward-looking statements. For a description of certain of such factors, see the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, and the Company’s other filings with the Securities and Exchange Commission. Any forward-looking information presented herein is made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.<\/p>\n

Investor and media contact<\/strong>
Rebecca Elliott
Vice President, Corporate Communications
Whitestone REIT
(713) 435-2219
ir@whitestonereit.com<\/a><\/p>\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

\n

HOUSTON, Nov. 11, 2021 (GLOBE NEWSWIRE) — When restaurant spaces become available at Whitestone REIT (NYSE: WSR) properties, there\u2019s no shortage of interest.<\/p>\n

The priority for Whitestone, though, is to select the right tenant for the right property.<\/p>\n<\/div>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts\/4670"}],"collection":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/comments?post=4670"}],"version-history":[{"count":1,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts\/4670\/revisions"}],"predecessor-version":[{"id":4680,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts\/4670\/revisions\/4680"}],"wp:attachment":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/media?parent=4670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/categories?post=4670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/tags?post=4670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}