Whitestone REIT bought for $1.7 billion by Ares Management

Forget AI. One of the world’s largest alternative asset managers wants in on suburban Texas shopping malls.

Whitestone REIT, a Texas retail real estate firm with a large presence in Dallas-Fort Worth, is being acquired by Los Angeles investment giant Ares Management. 

The deal, announced in a filing with the U.S. Securities and Exchange Commission Thursday, will see the Houston-based company go private and merge with certain Ares real estate funds for $1.7 billion cash, representing a 26.5% premium on Whitestone’s last unaffected share price. The merger is expected to close in the third quarter of this year and has received unanimous approval from Whitestone’s board. 

Whitestone owns more than 1 million leasable square feet total in the Dallas-Fort Worth area, primarily made up of suburban retail developments. Its 11 local properties include Las Colinas Village in Irving, Headquarters Village in Plano, and Eldorado Plaza, home to McKinney’s Trader Joes. In total, Whitestone owns 56 properties across the Dallas, Austin, San Antonio, Houston and Phoenix areas. 

“We believe Whitestone has shown the value of high-return smaller spaces occupied by a well-diversified mix of tenants. 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,” said Whitestone CEO Dave Holeman in a release. 

Ares is one of the largest alternative asset managers in the world, with more than $600 billion in assets under management and 4,200 employees globally. Other private equity firms including Blackstone and TPG were also interested in acquiring Whitestone, Reuters reported in March, as the real estate firm faced activist investor pressure to go private.

“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 in 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.”

Ares’ stock price is down around 40% from early 2026 highs, a pricing trend reflected in shares of other alternative asset managers. The industry is dealing with fears from investors that its significant software holdings are exposed to AI disruption.

Thus, Ares acquisition of Whitestone and similar real estate investments provides a lower-risk counterbalance by betting not on industry cycles but the steady demographic growth of booming areas like Dallas’ suburbs — especially as land itself becomes scarce. For example, while Collin County added more people from 2024 to 2025 than all but one county in America and Plano is down to less than 5% undeveloped land.