Austin News

A subsidiary of Stratus Properties Inc. has completed the sale of The Saint Mary apartment project in Austin.

“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,” Stratus President and CEO William H. Armstrong III said in a press release. “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.”

The sale of the The Saint Mary, a 240-unit luxury, garden style apartment project, was completed by The Saint Mary, L.P. for $60 million, or $250,000 per unit. The sale generated net proceeds of approximately $34 million after accounting for closing costs and payment of an outstanding construction loan. Stratus predicts it will receive approximately $21.3 million from the subsidiary in connection with the sale and also expects to recognize a pre-tax gain on the sale, net of gain allocated to non-controlling interests, of approximately $14 million.

“I am proud of our team for navigating the highly complex entitlement, design and leasing processes that maximized this development opportunity to meet market demand," Armstrong added. "Our team’s knowledge of and deep relationships in the market have enabled Stratus to raise third-party equity capital, arrange bank financing, oversee construction, expedite lease-up and manage and close the sale during a pandemic – all in less than three years. We look forward to reinvesting the proceeds of the sale in our robust pipeline of opportunities.”

The Saint Mary is an apartment property offering one- and two-bedroom units featuring contemporary design. Tenants enjoy amenities including a fitness center and resort-style infinity-edge pool. It is located near dining, retail, entertainment and recreational options, including options for hiking at The Barton Creek Green Belt and Slaughter Creek Trail.