Texas Retail Project Trades for $114M
- Feb 22, 2017
By Laura Calugar
Lakeway, Texas—Stratus Properties Inc. has completed the sale of its 100 percent owned The Oaks at Lakeway project northwest of Austin, Texas, to FHF I Oaks at Lakeway LLC, for $114 million. The cash purchase excludes approximately 35 acres of undeveloped property, which is zoned for residential, hotel and civic uses.
Located at 1900 Ranch Road, at the intersection of Highway 620 and Main Street, the development is an HEB Grocery Co. LP-anchored retail project planned for roughly 237,000 square feet of commercial space in the Lake Travis community. The Oaks will include 175,000 square feet of entertainment, dining and shopping space, in addition to the parking for golf carts, outdoor plazas, playscapes, open space and pedestrian trails throughout the property.
Planned according to U.S. Green Building Council LEED guidelines, the project will be developed on tracts acquired by Stratus between 2013 and 2014. In November 2016, an affiliate of the purchaser terminated an initial agreement to acquire the asset from Stratus pursuant to a right to terminate in its sole discretion during a 45-day inspection period. After having remained in active negotiations following the termination, the parties completed the transaction on substantially the same terms as provided in the initial agreement.
“The sale of The Oaks at Lakeway is in accordance with our five-year plan and at a price that exceeded our expectations. We believe this transaction provides strong evidence of the value created by our company’s strategy, including our retail development program,” said William Armstrong, president & CEO of Stratus, in prepared remarks.
Net cash proceeds were $50.8 million, after payment of transaction expenses, a net profits participation payment due to HEB and payoff of the balance of the Lakeway construction loan.
Image and video courtesy of oaksatlakeway.com and laketravis.com