Austin Mixed-Use Development Lands $26M in Financing
- May 04, 2017
Austin-based real estate development company Stratus Properties Inc. recently announced that it has obtained a construction loan in the amount of $26.3 million from Southside Bank for the initial phase of the Lantana Place mixed-use project in Austin.
The maturity date of the loan is April 2023 and interest on the financing is variable at one-month LIBOR plus 2.75 percent, subject to a minimum interest rate of 3 percent. The borrower is required to provide evidence of payment and contribution of at least $6.4 million in project costs out of funds from sources other than loan proceeds, as the construction loan agreement shows.
Located at the intersection of Southwest Parkway and William Cannon Drive West, the first phase of Lantana Place will offer 99,663 square feet of leasable space and will be anchored by a hotel and Moviehouse Theater & Eatery, a 12-screen high-quality dine-in movie theater. The second phase will include 140,000 square feet of office space in two buildings, while the final project will encompass approximately 325,000 square feet of retail, hotel and office uses.
Construction of the first phase is expected to break ground in May 2017 and the dine-in movie theater is expected to open its doors in the second quarter of 2018. Moviehouse Theater & Eatery already has one location in Northwest Austin, at the Trails at 620 shopping center.
Stratus Properties is engaged in the acquisition, entitlement, development, management, operation and sale of commercial, hotel and multi- and single-family residential real estate properties primarily located in the Austin area, as well as in other markets in Texas. Lantana currently includes four office buildings developed by Stratus, two luxury apartment complexes, 139 condominium units and 330 single-family homes.
“Our Lantana and Barton Creek communities are home to thousands of residents, have great roadway and utility capacity and over 5 million square feet of occupied office space, generating very strong daytime and nighttime demand for the types of services and amenities expected to be provided by this project. Lantana Place is the first of several Stratus mixed-use projects intended to serve this vibrant, and currently underserved, area of southwest Austin,” said William Armstrong III, chairman, president & CEO of Stratus, in a prepared statement.
Image courtesy of Blaine Weinheimer Architectural Illustration