Stratus Properties Inc. Completes Sale of Approximately 47 Acres at Magnolia Place for $14.5 Million
February 27 2024 - 4:15PM
Business Wire
Stratus Properties Inc. (NASDAQ: STRS) (“Stratus” or the
“Company”) today announced that it completed the previously
disclosed sale of approximately 47 acres at Magnolia Place for
$14.5 million. The sale generated pre-tax net cash proceeds to
Stratus of approximately $5.3 million, after transaction expenses
and payment of the remaining $8.8 million project loan. With the
completion of this sale and prior sales of portions of the project,
Magnolia Place, which is 100% owned by Stratus, consists of two
fully-leased retail buildings totaling 18,582 square feet, 11 acres
planned for approximately 275 multi-family units and approximately
$12.1 million of potential future reimbursements from the municipal
utility district, with no debt.
Magnolia Place is a mixed-use project in Magnolia, Texas,
shadow-anchored by a 95,000-square-foot H-E-B grocery store on an
adjoining 18-acre site owned by H-E-B. The land included in the
sale was planned for up to 600 multi-family units, a second phase
of retail development and up to seven pad sites. Previously at
Magnolia Place, Stratus sold two pad sites and 28 acres planned for
single-family residences for a total of $6.6 million, which
together with the recent sale totals $21.1 million in sales at
Magnolia Place. In the third quarter of 2022, Stratus substantially
completed the development of the two retail buildings along with
the infrastructure work for the project, including all pad sites,
as well as road, utility and drainage infrastructure necessary to
support the entire development. Stratus created a municipal utility
district that provides an opportunity for Stratus to recoup certain
road and utility infrastructure costs that totaled approximately
$12.1 million at December 31, 2023.
William H. Armstrong III, Chairman of the Board and Chief
Executive Officer of Stratus, said, “Magnolia Place is a clear
example of our team’s ability to identify, pursue and execute
valuable opportunities in our Texas markets. Our team has worked
closely with the City of Magnolia and other entities to add
significant value to the land through the entitlement and
development process. Our strong working relationships with key
regional leaders helped secure critical infrastructure for the
project, paving the path for retail and residential expansion to
meet growing demand. This transaction monetized another portion of
our investment and allowed us to fully repay the project loan while
maintaining a position in the future success of the project with
our remaining fully-leased retail space and land planned for
multi-family units.”
About Stratus Properties Inc.
Stratus is a diversified real estate company engaged primarily
in the acquisition, entitlement, development, management, leasing
and sale of multi-family and single-family residential and
commercial real estate properties in the Austin, Texas area and
other select markets in Texas.
Forward-Looking Statements
This press release contains forward-looking statements.
Forward-looking statements are all statements other than statements
of historical fact. The words “anticipates,” “may,” “can,” “could,”
“plans,” “believes,” “potential,” “possible,” “estimates,”
“expects,” “projects,” “targets,” “intends,” “likely,” “will,”
“should,” “to be” and any similar expressions are intended to
identify those assertions as forward-looking statements. Stratus
cautions readers that forward-looking statements are not guarantees
of future performance, and its actual results may differ materially
from those anticipated, expected, projected or assumed in the
forward-looking statements. Important factors that can cause
Stratus’ actual results to differ materially from those anticipated
in the forward-looking statements include, but are not limited to,
the impact of inflation and interest rate changes, Stratus’
expectations about the Austin and Texas real estate markets,
regulatory changes, Stratus’ expectations with respect to the
planning, financing, development, construction, completion and
stabilization of Stratus’ development projects, Stratus’
expectations regarding plans to sell, recapitalize or refinance
properties, Stratus’ eligibility for and potential receipt and
timing of receipt of municipal utility district reimbursements and
the factors described in more detail under the heading “Risk
Factors” in Stratus’ Annual Report on Form 10-K for the year ended
December 31, 2022, filed with the U.S. Securities and Exchange
Commission.
Investors are cautioned that many of the assumptions upon which
Stratus’ forward-looking statements are based are likely to change
after the date the forward-looking statements are made. Further,
Stratus may make changes to its business plans that could affect
its results. Stratus cautions investors that it undertakes no
obligation to update any forward-looking statements, which speak
only as of the date made, notwithstanding any changes in its
assumptions, business plans, actual experience or other
changes.
A copy of this release is available on Stratus’
website, stratusproperties.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240227124618/en/
Financial and Media Contact: William H. Armstrong III
(512) 478-5788
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