STRATUS PROPERTIES : ANNOUNCES PURCHASE OF LAND AND PLANS TO DEVELOP BLOCK 150 IN DOWNTOWN AUSTIN (Form 8-K)

By Editor On Sep 7, 2021

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STRATUS PROPERTIES INC. ANNOUNCES THE PURCHASE OF LAND AND PLANS DEVELOPMENT OF BLOCK 150 IN DOWNTOWN AUSTIN

Plans to develop a luxury high-rise apartment building with single storey retail

Construction is expected to start in early 2023, and completion is expected in mid-2025

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AUSTIN, TX, Sept. 7, 2021 – Stratus Properties Inc. (NASDAQ: STRS) (“Stratus” or the “Company”) today announced plans for Block 150, a proposed luxury high-rise rental project in downtown Austin, Texas. The location on 12th and San Antonio is just a few blocks west of the Texas State Capitol in Austin. Based on preliminary plans, Block 150 would be developed as a 400-foot tower consisting of approximately 420,000 square feet of gross space with 300 luxury Class A multi-family units for rental and retail on the ground floor. The project includes the historic AO Watson home, which is being renovated and expanded to include amenities such as a restaurant, pool and garden while maintaining the property’s historical and architectural features. Stratus’ subsidiary completed the land purchase on September 1, 2021, and Stratus expects to finalize development plans over the next 12 to 18 months. Block 150 is expected to achieve a green building rating from Austin Energy.

William H. Armstrong III, Chairman of the Board and Chief Executive Officer of Stratus, said, “We are very excited about Block 150, a downtown Austin high-rise rental project that focuses on luxury living and sustainable design. Unlike the surrounding lots, Block 150 is unaffected by the height restrictions of the Capitol and offers unobstructed 360-degree views of the Capitol, downtown Austin, the University of Texas campus, and West Austin. ‘

Mr. Armstrong continued, ‘This project is also eligible for the Austin Downtown Density Bonus, which would increase its development potential. Block 150 takes advantage of the booming residential real estate market in Austin and is another addition to our growing pipeline of multi-family projects. This exceptional location offers the opportunity to leverage high quality real estate to develop that will benefit Stratus shareholders. ‘

Rendering of block 150

The project is owned by Stratus Block 150, LP, a Texas limited partnership. Funding for the land purchase and pre-development costs is in place and includes a $ 14 million land acquisition loan to the limited partnership guaranteed by Stratus.The land purchase and pre-development costs are funded by approximately $ 21 million of equity, the Stratus and private equity investors in the limited partnership have brought the project.

Key project milestones ahead include completing the design and engineering, obtaining final site development and building permits, obtaining downtown density bonus permits, and increasing the balance of development capital, which could take anywhere from 12 to 18 months for Stratus projects . Stratus’ preliminary development plans are subject to change and the anticipated size, scope, and cost of the project could change materially. Subject to market conditions, obtaining funding for the remainder of the development capital, approval from the Board of Directors, and required project approvals, permissions, and permits, block 150 construction is expected to begin in early 2023 and is expected to be completed in mid-2025.

About Stratus Properties Inc.

Stratus is a diversified real estate company primarily engaged in the acquisition, authorization, development, management and sale of commercial, multi-family and single-family homes, real estate leasing and hotel and entertainment operations in the Austin, Texas area and other select, fast growing markets in Texas.

Forward-Looking Statements

This press release contains forward-looking statements in which Stratus discusses factors that Stratus believes could affect future performance. Forward-looking statements are all statements that are not historical facts. The words “foresee”, “can”, “can”, “could”, “plan”, “believe”, “potentially”, “possible”, “estimate”, “expect”, “projects”, “goals” ” Intended, “likely”, “will”, “should”, “be” and similar expressions identify these statements as forward-looking statements. Stratus advises readers that forward-looking statements are not guarantees of future performance and that actual results could differ materially from those anticipated, anticipated or assumed in the forward-looking statements. Important factors that could cause Stratus actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, Stratus’ ability to enter into financing agreements for the development and construction of Block 150 and to carry out its development profitably Block 150, Stratus ‘ability to obtain various permits, including downtown density permits, permits, permissions, and development licenses. Block 150, Stratus’ ability to continue to develop and execute its strategies effectively, including its ability to develop, finance , Build and sell real estate on schedule and at prices that the Board of Directors deems acceptable, changes in real estate demand in select Texas markets where Stratus operates, changes in economic, market and business conditions that cause unc Eating and ongoing effects of the COVID-19 pandemic and other factors outlined under the heading “Risk Factors” in St. detailed in ratus’ annual report on Form 10-K for the year ended December 31, 2020, filed with the SEC.

Investors are cautioned that many of the assumptions on which Stratus forward-looking statements are based are likely to change after the date of the forward-looking statements. In addition, 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 that speak only as of the date of publication, regardless of any changes in its assumptions, business plans, actual experience or other changes.

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A copy of this press release is available on the Stratus website stratusproperties.com.

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Disclaimer of liability

Stratus Properties Inc. published this content on September 07, 2021 and is solely responsible for the information contained therein. Distributed by public, unedited and unchanged, on September 07, 2021 21:01:08 UTC.

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