Ares Management Acquires Whitestone REIT in $1.7B All-Cash Retail Real Estate Deal

Ares Management (NYSE: ARES) and Whitestone REIT (NYSE: WSR) announced April 9, 2026, that the two companies have entered into a definitive merger agreement under which Ares Real Estate funds will acquire all outstanding Whitestone common shares and operating partnership units for $19.00 per share in an all-cash transaction valued at approximately $1.7 billion.

The purchase price represents a 12.2% premium to Whitestone's closing stock price on April 8, 2026, the last full trading day before the announcement, 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 potential sale.

Portfolio Overview: Convenience-Focused Retail in High-Growth Markets

Whitestone's portfolio, as of March 31, 2026, comprises 56 open-air, convenience-focused retail properties totaling approximately 4.9 million square feet. The properties are concentrated in some of the country's fastest-growing metropolitan areas, including Phoenix, Austin, Dallas-Fort Worth, Houston, and San Antonio.

The centers are merchandised with service-oriented tenants spanning food and grocery, health and fitness, financial and logistics services, education, and entertainment. Whitestone has described its strategy as targeting smaller, high-return spaces occupied by a diversified mix of tenants serving surrounding communities.

"We believe Whitestone has shown the value of high-return smaller spaces occupied by a well-diversified mix of tenants," said Dave Holeman, Whitestone's chief executive officer. "Our investment strategy is designed to allow businesses to fuel connection and convenience within thriving, dynamic communities. We believe this transaction with Ares is a testament to the value that strategy has created for our business and, ultimately, for our shareholders."

Christine Mastandrea, Whitestone's president and chief operating officer, added: "We are deeply proud of our Whitestone team for their dedication to growing our platform built upon a recognition of the value of neighborhood centers and aligning them with their surrounding communities. We look forward to the continued success of our portfolio as part of Ares' leading Real Estate business."

Ares' Strategic Rationale: 'New Economy' Retail Real Estate

For Ares Management, the acquisition represents a move to diversify its real estate footprint into what the firm describes as necessity-based retail — properties serving day-to-day consumer needs including grocery, pharmacy, healthcare, fitness, and dining.

"Whitestone's portfolio provides an attractive opportunity to further diversify Ares Real Estate's footprint with necessity-based retail centers in high-demand, supply-constrained metro regions across Arizona and Texas," said David Roth, global head of real estate strategy and growth at Ares Real Estate. "This transaction reflects our 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. Looking ahead, we are confident in Ares' ability to support and expand on the Whitestone portfolio and create value for both communities and investors."

Ares Management reported approximately $623 billion in assets under management as of December 31, 2025, with operations spanning North America, South America, Europe, Asia Pacific, and the Middle East across credit, real estate, private equity, and infrastructure strategies.

Transaction Structure

The transaction was unanimously approved by Whitestone's board of trustees and is not subject to a financing condition. The deal is expected to close in the third quarter of 2026, subject to customary closing conditions including shareholder approval.

Upon completion, Whitestone will become a private company, and its shares will be de-registered under the Securities Exchange Act of 1934 and will no longer trade on the New York Stock Exchange.

Amy Feng, chair of the Whitestone board, said the transaction "delivers significant, immediate and certain value to our shareholders while positioning Whitestone's assets for continued success."

BofA Securities is serving as Whitestone's lead financial advisor and provided a fairness opinion to the board. Jones Lang LaSalle Securities is also serving as a financial advisor to Whitestone. Bass Berry & Sims is acting as Whitestone's legal counsel.

On the buyer side, Citigroup Global Markets Inc. is acting as lead financial advisor and financing provider to Ares, with Morgan Stanley & Co. LLC also serving as financial advisor. Kirkland & Ellis LLP is serving as legal counsel to Ares.

The transaction is subject to Whitestone shareholder approval, and the company intends to file a preliminary proxy statement on Schedule 14A with the Securities and Exchange Commission in connection with the proposed merger.