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Stratus Properties Inc. Announces Refinancing of The Santal
AUSTIN, Texas--(BUSINESS WIRE)-- Stratus Properties Inc. (NASDAQ: STRS) announced today that on September 30, 2019, Santal, L.L.C., a wholly owned subsidiary
About this update from Stratus Properties Inc.
[{"type":"text","content":" AUSTIN, Texas--(BUSINESS WIRE)--\nStratus Properties Inc. (NASDAQ: STRS) announced today that on September 30, 2019, Santal, L.L.C., a wholly owned subsidiary of Stratus, closed a $75 million loan with ACRC Lender LLC to refinance The Santal, a 448-unit, garden-style, multi-family property located in the upscale Barton Creek community. The new loan has a three-year primary term, with the possibility of two 12-month extensions, bears interest at LIBOR plus 2.85 percent with a 4.80 percent floor, and is non-recourse to Stratus, except for customary carve-outs including environmental liabilities. Net proceeds, after payoff of the existing Santal construction loans with Comerica Bank and payment of transaction costs, were approximately $18 million, inclusive of cash reserves. The refinancing enabled Stratus to reduce both its investment in The Santal and its recourse debt exposure while increasing the rate of return on invested equity.\n\n\nWilliam H. Armstrong III, Chairman of the Board, President and Chief Executive Officer of Stratus stated, “We are pleased to announce that after successfully constructing and stabilizing The Santal, we have now refinanced the project, recouping a substantial portion of our initial investment through a non-recourse refinancing. We believe that maintaining full ownership of this best in class asset, which generates a significant return on our investment and is a key component of our Section N mixed-use development, will benefit Stratus.”\n\n\nThe Santal, located near the core of Stratus' Section N mixed-use project in planning in Barton Creek, is currently approximately 99 percent leased at strong rental rates.\n\n\nStratus is a diversified real estate company engaged primarily in the acquisition, entitlement, development, management, operation and sale of commercial, and multi-family and single-family residential real estate properties, real estate leasing, and the operation of hotel and entertainment businesses located in the Austin, Texas area and other select, fast-growing markets in Texas.\n\n\n____________________________\n\n\nCAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS.\n\n\nThis press release contains forward-looking statements in which Stratus discusses factors it believes may affect its future performance. Forward-looking statements are all statements other than statements ...