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Stratus Properties Inc. Announces Agreement to Sell The Santal for $152 Million
AUSTIN, Texas--(BUSINESS WIRE)-- Stratus Properties Inc. (NASDAQ: STRS) (“Stratus” or the “Company”) today announced an agreement to sell The Santal for $152
About this update from Stratus Properties Inc.
[{"type":"text","content":" AUSTIN, Texas--(BUSINESS WIRE)--\nStratus Properties Inc. (NASDAQ: STRS) (“Stratus” or the “Company”) today announced an agreement to sell The Santal for $152 million, or approximately $339 thousand per unit, in cash. The Santal is Stratus’ wholly owned 448-unit garden-style, multi-family luxury apartment complex located in Section N of Austin’s upscale Barton Creek community.\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210921006070/en/The Santal (Photo: Business Wire)\nThe sales price represents a premium of approximately 96% to Stratus’ estimated net asset value of The Santal (after tax and net of loan prepayment fee and other costs) as of December 31, 2020 as reflected in Stratus’ Investor Presentation dated March 15, 2021, available on Stratus’ website. The agreement to sell The Santal contains a 30-day diligence period during which the buyer may terminate the transaction for any reason. The transaction is expected to close in the fourth quarter of 2021, subject to the satisfaction of customary closing conditions.\n\nWilliam H. Armstrong III, Chairman of the Board and Chief Executive Officer of Stratus, stated, “This is another clear example of our strategy to optimize value for our shareholders by developing high-quality properties and holding or monetizing them depending on market conditions. We had opportunities to sell The Santal in 2019 but elected to hold and refinance it at the time. The refinancing enabled us to reduce both our investment in The Santal and our recourse debt exposure while increasing the rate of return on invested equity. Since then, we have engaged in a process that generated multiple high-quality, competitive offers. We are confident that this sale represents a tremendous opportunity for our shareholders.”\n\nMr. Armstrong continued, “The Stratus team designed and developed this project to meet the continuing strong demand for high-quality residential property located close to downtown Austin. We believe our success with The Santal further supports our plan for the adjacent environmentally sustainable Holden Hills residential development and Section N mixed-use development projects planned for Barton Creek.”\n\nMr. Armstrong concluded, “We estimate that the sale of The Santal will produce pre-tax cash proceeds of approximately $72 mi...