Whitestone Hires Bank Of America To Handle Possible Acquisition

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Following acquisition interest from major real estate players, Houston-based Whitestone REIT has hired Bank of America to oversee the proceedings.

The shopping center REIT has seen acquisition interest from Blackstone and TPG, according to sources that spoke to Reuters. For years, Whitestone has faced pressure to go private from stakeholders citing concerns about the REIT's leadership and finances.

Nothing has been finalized, and there's no guarantee a sale will even take place, according to Reuters.

One of Whitestone's majority owners, Emmett Investment Management, nominated four candidates to replace the majority of the REIT's board of directors. The company has hinted at a potential proxy fight for nominations.

In October 2023, Whitestone turned down an acquisition bid from Fortress Investment Group, declining to address the reported offer. The following spring, the REIT entered into a proxy contest with Erez Asset Management, which claimed the board's "independence and lack of transparency" were concerns.

MCB Real Estate, which owns more than 9% of Whitestone, offered to buy the REIT at a 21% premium to its share prices in November and said the company didn't respond to the offer.

Whitestone has also faced legal challenges with Pillarstone Capital REIT Operating Partnership. In December, Whitestone received $33.4M from a bankruptcy settlement with the company.

As of Dec. 31, 2025, Whitestone REIT owned 56 retail properties comprising 4.9M SF. Most of the properties are focused in the South.

REIT mergers and acquisitions activity has picked up steam after a period of stagnation.

Ares Alternative Credit acquired Plymouth Industrial REIT for $2.1B, Rithm Capital paid $1.6B to acquire Paramount Group, and a joint venture between Kemmons Wilson Hospitality Partners and Ascendant Capital Partners agreed to buy Sotherly Hotels for roughly $46.1M.

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