Business
Stratus Properties Inc. Completes Sale of Block 21 to Ryman Hospitality Properties, Inc. for $260 Million
AUSTIN, Texas--(BUSINESS WIRE)-- Stratus Properties Inc. (NASDAQ: STRS) (“Stratus” or the “Company”) announced that yesterday it completed the previously
About this update from Stratus Properties Inc.
[{"type":"text","content":" AUSTIN, Texas--(BUSINESS WIRE)--\nStratus Properties Inc. (NASDAQ: STRS) (“Stratus” or the “Company”) announced that yesterday it completed the previously announced sale of Block 21 to Ryman Hospitality Properties, Inc. (“Ryman”) and its affiliates (collectively, the “Purchaser”) for a purchase price, subject to certain purchase price adjustments, of approximately $260 million, which includes the Purchaser’s assumption of approximately $136 million of existing mortgage debt, with the remainder paid in cash. Stratus’ net cash proceeds were approximately $117 million pre-tax (before prorations, but including $6.9 million of post-closing escrow amounts) and are expected to be approximately $90 million after prorations and income taxes. Stratus expects to record a pre-tax gain on the sale of approximately $120 million in the second quarter of 2022 (approximately $94 million after-tax).\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220531005964/en/Block 21 (Photo: Business Wire)\nBlock 21 was Stratus’ wholly owned mixed-use real estate property in downtown Austin, Texas. Block 21 contains the 251-room W Austin Hotel and is home to Austin City Limits Live at the Moody Theater, a 2,750-seat entertainment venue that serves as the location for the filming of Austin City Limits, the longest running music series in American television history. Block 21 also includes Class A office space, retail space and the 3TEN ACL Live entertainment venue and business, which has a capacity of approximately 350 people. Stratus completed the development of Block 21 in 2010.\n\nWilliam H. Armstrong III, Chairman of the Board and Chief Executive Officer of Stratus, said, “We are pleased to conclude the sale of Block 21. I want to thank Colin Reed and the entire Ryman team for their expertise and diligence throughout the transaction process. Ryman has demonstrated its leadership and innovation in both the music and hospitality industries and I believe they are the ideal buyer for this asset. I am confident that Block 21 will continue to thrive as an Austin icon within the Ryman portfolio. I am proud of our team, who have stayed focused on this transaction as we pursue many other exciting opportunities in Austin and other Texas markets, and who have again delivered significant value for our comp...