Oct 22 2009
Austin-based Stratus Properties Inc. (NASDAQ: STRS) and the Canyon-Johnson Urban Funds announced today the closing of a replacement construction loan for the W Austin Hotel & Residences project.
The loan was funded by Beal Bank Nevada (“Beal”) and originated by Beal’s wholly owned lending subsidiary, CLG Hedge Fund, LLC. The development team secured the financing after determining that the original lender, Corus Bank, N.A., would be unable to fund the loan. The project is under construction, currently at the 25th of 37 total floors, and is on schedule to open in December 2010.
“Our ability to secure a construction loan in the current economic climate reflects the strength and quality of this project and of the relative strength of the local Austin real estate market,” said Beau Armstrong, CEO of Stratus Properties. “Unlike many markets, downtown Austin has a small supply of upper end condominiums – just over 400 units – and is not likely to have any additional new supply in the next five years. We appreciate in particular CLG’s unique flexibility and experience, and Beal Bank Nevada’s strength and liquidity, which helped make this transaction possible.”
Commenting on the transaction, Anthony Sassine, Director of Loan Originations at CLG Hedge Fund, LLC, noted, “The disruption in the credit markets has given us the opportunity to work on a number of compelling projects with some of the best developers in the country.” Mr. Sassine added, “This was a complex, fluid transaction made possible by the phenomenal Stratus/Canyon-Johnson team. The W Austin is a landmark development for the city, and we are very pleased to be involved in such a great project.”
The mixed-use project, known as “Block 21,” is located in the heart of downtown Austin’s 2nd Street District overlooking Lady Bird Lake, and will feature 159 luxury residential units, 252 hotel guestrooms and suites, 18,000 square feet of retail and restaurants, 37,000 square feet of office space and a street-level plaza. Also unique to the project, a state-of-the art, live music venue that will serve as the new home of the world renowned Austin City Limits, the country’s longest running televised music series. The venue will be operated by Live Nation.
W Austin Residences will be located on floors 18 through 37, providing excellent views of Lady Bird Lake, the Hill Country, University of Texas Tower, State Capitol Building and the downtown skyline. Homeowners will enjoy all of the W brand’s celebrated comforts including the renowned 24/7 Whatever/Whenever® concierge service, an 8,000-square-foot spa and fitness area, private pool and preferred access to property restaurants and the music venue.
Source: http://www.stratusproperties.com/