Stratus Properties Inc. announced Tuesday that its subsidiary The Saint Mary, L.P. has completed the sale of The Saint Mary, a 240-unit luxury, garden-style apartment project in the Circle C community in Austin, Texas, for $60 million, or $250,000 per unit.
”The sale of The Saint Mary is another example of the substantial value we create for our shareholders with our proven approach to developing and owning well-located properties in strong Texas markets. In fact, we believe that the per unit sales price for The Saint Mary is the highest ever recorded in the Austin MSA for traditional garden-style surface-parked apartment product,” said William H. Armstrong III, Chairman of the Board, President and Chief Executive Officer of Stratus.
”After closing costs and payment of the outstanding construction loan, the sale generated net proceeds of approximately $34 million,” said Stratus in a statement. ”Stratus anticipates receiving approximately $21.3 million from the subsidiary in connection with the sale. Stratus expects to recognize a pre-tax gain on the sale, net of gain allocated to noncontrolling interests, of approximately $14 million.”
The sale price reflects a 28% premium to the gross value for The Saint Mary used in the calculation of Stratus’ estimated net asset value as of December 31, 2019 as shown in Stratus’ Investor Presentation dated March 25, 2020 available on Stratus’ website.
The Saint Mary, a one and two-bedroom apartment property, features a contemporary design targeted to appeal to the technology-based workforce in Southwest Austin.
The garden-style apartment project was approved for the Austin Energy Green Building Program. Construction commenced in June 2018 and was completed in December 2019. The first tenants took occupancy in July 2019, and the project was approximately 85% leased on the date of sale.