Stratus Properties has announced its development plans for Block 150, a high-rise rental project in downtown Austin, Texas.
The location is just a few blocks west of the Texas State Capitol in Austin.
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As per the preliminary plans, Block 150 will be developed as a 400-foot tower, comprising around 420,000 gross ft2 with 300 luxury multi-family units for lease and ground-level retail.
The project features the historic AO Watson house, which will be renovated and expanded to provided amenities that may include a restaurant, pool and garden.
Stratus’ subsidiary closed the land acquisition on 1 September. The firm intends to finalise development plans over the next 12 to 18 months.
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Block 150 is expected to achieve an Austin Energy Green Building rating.
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By GlobalDataStratus CEO and chairman of the board William H Armstrong III said: “We are very excited about Block 150, a high-rise rental project in downtown Austin focused on luxury living and design sustainability. Unlike the surrounding properties, Block 150 will not be impacted by Capitol view height restrictions and will have unobstructed 360-degree views of the Capitol, downtown Austin, the University of Texas campus and west Austin.”
Armstrong continued: “This project is also eligible for Austin’s downtown density bonus, which would enhance its development potential. Block 150 takes advantage of the booming residential real estate market in Austin and is another addition to our growing pipeline of multi-family projects. This extraordinary site presents the opportunity to develop high-quality properties with third-party capital that preserves upside for Stratus shareholders.”
The project is owned by Stratus Block 150, a Texas limited partnership.
Financing for the land purchase and predevelopment costs is currently in place and includes a land acquisition loan to the limited partnership in $14m, which is guaranteed by Stratus.
The remaining land acquisition and predevelopment costs will be funded by around $21m in equity contributed by Stratus and private equity investors to the limited partnership.
Stratus will get 25% of the limited partnership’s equity, in return for development costs to date and cash, and will manage the project.
Among the upcoming important milestones for the project include completing design and engineering, securing final site development and building permits, securing downtown density bonus approvals, and raising the balance of the development capital, which Stratus expects could take between 12 to 18 months.
Subject to market conditions, securing financing for the balance of the development capital, board approval, and necessary approvals for the project, construction on Block 150 is expected to begin in early 2023.
The project is anticipated to complete in mid-2025.
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Rendering of Block 150. Credit: Business Wire.
