Savills represents Stratus Properties Inc., in the sale of the mixed-use real estate asset
Savills is representing Stratus Properties Inc. (NASDAQ: STRS), a diversified real estate company, in the $275 million sale of Block 21. Block 21 is Stratus’ wholly owned mixed-use real estate development and entertainment business located in downtown Austin.
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.
The integrated Savills team is led by Capital Markets in New York and supported by local brokers in the Austin office and Savills Global Hospitality advisors.
“Block 21 is the premier asset in the heart of Austin’s 2nd Street District,” said Savills Vice Chairman Mike Rotchford. “It is the best asset in the most exciting growth location in America. It’s not often that sites like this are marketed, so we’re pleased to represent Stratus in this deal.”
Robert Elms, senior managing director leading the transaction, said, “Bringing this site to market was an exciting challenge. Stratus created one of the most unique venues in the country by bringing together music, hospitality and business in one location.”
Ryman Hospitality Properties, Inc., a NYSE listed real estate investment trust has agreed to purchase the property by assuming approximately $142 million in existing mortgage debt and paying the remainder of the purchase price in cash.
“We thank the Savills team for their hard work. Savills helped us obtain over 100 confidentiality agreements from domestic and foreign investors, arrange more than 20 in-depth property tours, and receive multiple bids from several high-profile suitors,” said William H. Armstrong III, chairman of the board, president and CEO of Stratus. “Ultimately, based upon Savills advice, we decided Ryman was just the best fit. Their expertise in hospitality and live entertainment, make them the ideal company to usher Block 21 and ACL Live into the next decade.”
The transaction is expected to close in the first quarter of 2020.
About Savills Inc.
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