HOUSTON, July 26, 2022–(BUSINESS WIRE)–On July 21, 2022, the board of directors of Pillarstone Capital REIT (“Pillarstone” or the “Company”) (OTC Pink: PRLE) appointed Bradford D. Johnson as President, Chief and Trustee, and also appointed Dan P. Kovacevic as Chief Financial Officer and William J. Carter as Chief Operating Officer.
Pillarstone also announced that on July 19, 2022, Whitestone TRS, Inc. notified Pillarstone that it confirmed the termination of the management agreements under which Whitestone TRS provided management services to Pillarstone for its eight properties and other matters. administrative, from 30 days from the date of the notice. Whitestone TRS is a subsidiary of Whitestone REIT, owner of Whitestone REIT Operating Partnership, LP, holder of 81.4% of the total outstanding Class A units representing the limited partnership interests in Pillarstone Capital REIT Operating Partnership LP (“Pillarstone OP”). Almost all of Pillarstone’s business is conducted through Pillarstone OP. Pillarstone is the sole general partner of Pillarstone OP and owns 18.6% of the outstanding shares of Pillarstone OP. Pillarstone had previously notified Whitestone of its intention to insource the management and take over operations of the Pillarstone Properties, but had taken no steps to terminate the management agreements as of the date of Whitestone’s TRS notice.
Pillarstone is now pursuing its plan to become a self-managed, multi-family and single-family rental real estate company.
“We are delighted to have Bradford and its selected executives join our management team and Bradford to join the Board of Directors,” said Dennis Chookaszian, Pillarstone’s Lead Independent Director. “Bradford brings to Pillarstone a wealth of experience in all phases of the management and development of commercial property across multiple sectors. The Directors and I believe that Bradford, Dan and William are exceptionally qualified to take Pillarstone forward and we are very excited about Pillarstone’s future with Bradford at the helm.”
“I am delighted to lead the internalization of Pillarstone’s management team and implement the company’s strategic direction to transform our asset base from a mix of industrial flexible buildings and managed office buildings. externally into an internally managed, value-added portfolio of multi-family and single-family rental properties,” Mr. Johnson said. of the board of directors and management. Our team has the know-how to leverage their experience to create value appreciation for our shareholders and enhance the Pillarstone experience for our tenants.”
“I am personally delighted to be surrounded and supported by a Board of Directors that has extensive experience in real estate and governance, who is recognized as a leader in the real estate industry and well known on public and private capital markets,” Johnson added. “I am privileged to serve as CEO and lead a team of experienced and proven real estate professionals to execute the strategic plan approved by our Board of Directors. I believe Pillarstone’s current portfolio is well positioned for development and redevelopment to sell and maximize value as we transform the Company by acquiring value-added residential rental properties.
“We plan to work with Whitestone for an efficient transition of back office and account management systems from Whitestone to Pillarstone,” Johnson said.
Bradford D. Johnson, President, CEO and Director
Bradford D. Johnson has 40 years of experience in debt and equity capital markets, portfolio asset management and business development for domestic and international public and private REITs, pension funds and companies with offices, retail, senior living, student housing, multi-family apartments and single-family rental operations in the United States Most recently, he served as Executive Vice President of Acquisitions and asset management for Whitestone REIT from 2010 to February 2022. Prior to Whitestone, Mr. Johnson served as Vice President of Acquisitions and Development with the Campus Living Villages Fund; Director of Finance and Capital Markets for Place Properties; CEO and CFO of Matrix Healthcare Development, Inc.; VP Development Manager for Robert Patillo Properties; VP Asset & Portfolio Management, SE Region USA for Lendlease North America, formerly The Yarmouth Group Inc.; and began his career as Associate Financial Analyst, Real Estate Finance Group for LaSalle Partners, a predecessor company to Jones Lang LaSalle; and broker in income properties for Marcus & Millichap. Mr. Johnson holds a Bachelor of Arts in Commerce from Baylor University.
Dan P. Kovacevic, Chief Financial Officer
Dan P. Kovacevic has over 30 years of commercial and residential real estate experience as a developer and CFO for REITs and public and private companies operating in the retail, multi-family apartment and residential sectors. single-family homes. Prior to joining Pillarstone, Mr. Kovacevic was Vice President of Whitestone REIT, responsible for leasing and managing 2.4 million square feet of retail from 2011 to February 2022. His previous roles include Chief Financial Officer and Director at Mitroff Companies, a builder of Chicago suburban homes and commercial real estate business; VP-Finance at Midwest Development Corporation, a Chicago-based real estate developer; and Audit Partner at Coopers and Lybrand, now part of Price Waterhouse Coopers. Mr. Kovacevic served as president of the Homebuilders Association of Greater Chicago in 2006 and is currently serving his second term on the City of Fountain Hills Planning and Zoning Commission. He is a Certified Public Accountant and holds a Bachelor of Science in Civil Engineering from Northwestern University, McCormick School of Engineering and a Masters in Management, Finance and Accounting from Northwestern University, Kellogg Graduate School of Management.
William J. Carter, Chief Operating Officer
William J. Carter has over 40 years of commercial real estate experience. Prior to joining Pillarstone, he was President and Owner of Columbia Capital LLC, which has been providing short-term bridging loans to real estate professionals since 2013. His prior experience includes serving as Group Vice President for Continental Illinois Bank with divisional responsibility for a $2 billion construction project. loan portfolio and managerial responsibility of 30 real estate professionals; CEO and President of Granada Construction Corporation, a regional apartment development company, where he developed over 5,000 apartments and secured over $300 million in equity and debt; managing member of De Morgan Capital, a company with a UK pension fund to acquire property, raise capital and provide advisory services; senior analyst for Real Estate Research Corporation, an international real estate advisory firm; and Managing Director of Jupiter Realty, Major Realty and Brencor LLC. Mr. Carter holds a bachelor’s degree in business administration from the University of Georgia.
About Pillarstone REIT
Pillarstone Capital REIT (OTC Pink: PRLE) is a Maryland real estate investment trust engaged in the investment, ownership and operation of commercial properties. The Company, through the limited partnership of which the Company is the general partner, owns six properties in Houston, Texas and two properties in Dallas, Texas. The company was founded on March 15, 1994 and is headquartered in Houston, TX. For more information, visit www.pillarstone-capital.com
Statements contained in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially. The words “plans”, “believes”, “expects”, “estimates”, “intends”, “may”, “plans”, “plans”, “will”, “would” and Similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements are subject to risks, uncertainties and other factors, many of which are beyond the Company’s control, which could affect the Company’s business, financial condition, liquidity, results of operations, funds from operations or prospects to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include the potential adverse of the ongoing global coronavirus pandemic, including measures taken to contain or treat the coronavirus, on the Company, the Company’s tenants and the global economy and financial markets, that any tra Potential future action is subject to market conditions and the availability of capital and may not be identified or completed on favorable terms, or at all, and the Company’s efforts to internalize management may not result in the expected benefits or may result in unexpected costs or liabilities, as well as the risks and uncertainties identified in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed March 30, 2022, and amendment No. 1 on Form 10-K filed on April 29, 2022, and all other filings made with the SEC after such date, as such the risks, uncertainties and other important factors may be updated from time to time in subsequent reports of the Company. Further, the Company cautions readers not to place undue reliance on these forward-looking statements, which speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unforeseen events or changes in future operating results, except as required by law.
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