Business
Stratus Properties Inc. Completes Sale of The Santal for $152 Million
AUSTIN, Texas--(BUSINESS WIRE)-- Stratus Properties Inc. (NASDAQ: STRS) (“Stratus” or the “Company”) today announced that it has 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”) today announced that it has completed the previously announced sale of The Santal for $152 million, or approximately $339 thousand per unit, in cash. The sale generated pre-tax net cash proceeds to Stratus of approximately $74 million, after transaction expenses and payment of the project loan. Stratus estimates after-tax net cash proceeds to be approximately $51 million, after payment of profit participation incentive plan amounts, and expects to record a pre-tax gain on sale of approximately $80 million in the fourth quarter of 2021.\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211213006052/en/The Santal (Photo: Business Wire)\nThe sale generated an internal rate of return to Stratus of approximately 32 percent (pre-tax) calculated based on the Company’s carrying value of the property contributed to the project, resulting in an equity multiple of 3.58x. The sales price of The Santal implies a net asset value (“NAV”) of $51 million, a 103 percent premium to the $25 million estimated after-tax NAV of The Santal as of December 31, 2020, as reflected in Stratus’ Investor Presentation dated March 15, 2021, available on Stratus’ website.\n\nThe Santal was Stratus’ wholly owned 448-unit garden-style, multi-family luxury apartment complex located in Section N of Austin’s upscale Barton Creek community, located minutes away from downtown Austin and offering both Hill Country and downtown Austin views. Stratus commenced construction on The Santal during first-quarter 2015 and completed construction of the first phase during third-quarter 2016 and the second phase during first-quarter 2019. Stratus had opportunities to sell The Santal in 2019 for a substantially lower price than the current sale price, but elected to hold and refinance it at the time. On the date of sale, The Santal was fully leased and stabilized.\n\nWilliam H. Armstrong III, Chairman of the Board and Chief Executive Officer of Stratus, stated, “We are pleased with the continued validation of our strategy to source, plan, develop and sell properties at the right time. The sale prices of The Santal and The Saint Mary, which we sold earlier this year, reflect significant premiums to NAV. The Board is curren...