Stratus Properties Inc. Announces Completion of $57.5 Million Sale of Lantana Place Retail Component, Strengthening Financial Position and Advancing Strategic Growth Plan
Stratus Properties Inc. (NASDAQ: STRS) (“Stratus”), a leading real estate development company based in Austin, Texas, announced today that it has successfully completed the previously disclosed sale of its 100%-owned and stabilized Lantana Place – Retail project. The transaction, valued at $57.5 million in cash, marks a significant milestone for the company as it continues to execute its long-term strategy of monetizing select assets to enhance shareholder value and reinvest in future development opportunities.
According to Stratus, the sale generated pre-tax net cash proceeds of approximately $26.9 million after accounting for transaction-related selling costs and repayment of the project loan. The sale price secured for Lantana Place – Retail represents a premium compared to the asset’s gross value included within Stratus’ net asset value assessment as of December 31, 2024. That valuation was disclosed in the company’s Investor Presentation issued on March 28, 2025. Achieving a premium over net asset value underscores the strong market demand for high-quality mixed-use assets in Austin as well as the company’s disciplined execution approach.
Strategic Positioning and Retained Ownership Components
While Stratus has divested the retail portion of the Lantana Place development, the company continues to retain ownership of the property designated for The Saint Julia, a planned approximately 210-unit multi-family residential community that will form an integral component of the broader Lantana Place master plan. The planned multifamily project is expected to support continued demand for residential offerings in the rapidly growing Austin market and enhance the overall long-term value creation strategy associated with the mixed-use development.
In addition to The Saint Julia residential component, Stratus also retains development entitlements for an additional 160,000 square feet of commercial space on approximately five acres within the Lantana community. These entitlements provide optionality for future development phases and opportunities to respond to evolving market needs in one of Austin’s most desirable submarkets.
Overview of the Lantana Place Development
Lantana Place – Retail was conceived as part of Stratus’ larger mixed-use development vision for the Lantana community, situated just south of the Barton Creek area in southwest Austin. The premium retail environment was designed to serve both the surrounding residential community and the broader regional consumer base. Located in a flourishing and high-income area, the property has benefited from the strong economic and population growth characterizing the Austin metropolitan region in recent years.
Stratus completed construction of the project’s first phase of retail space in 2018, delivering approximately 99,377 square feet of high-quality commercial and lifestyle-oriented retail. The anchor tenant, Moviehouse & Eatery, opened to the public in May 2018, bringing a luxury dine-in cinema experience and becoming a strong draw for the development. The retail mix was curated to feature popular dining, entertainment, and service-based tenants aimed at supporting community engagement and sustained foot traffic.
Further expanding the mixed-use vision, Stratus entered into a ground lease agreement with a hotel operator for the development of an AC Hotel by Marriott at the site. Construction on the hotel progressed successfully, and it opened in November 2021. The hotel addition contributed to elevating the overall value proposition of Lantana Place, attracting business and leisure travelers and helping establish the development as a well-rounded destination within the market.
Leadership Perspective: Strengthening Portfolio and Project Pipeline
William H. Armstrong III, Chairman of the Board and Chief Executive Officer of Stratus Properties, emphasized the strategic importance of the sale and its alignment with the company’s portfolio optimization strategy. Armstrong stated:
“The successful sale of Lantana Place – Retail reflects our team’s continued ability to execute on our strategy by unlocking value from our portfolio through disciplined development and timely asset sales. This transaction monetized a key asset at an attractive price, allowing us to fully repay the project loan, enhance our financial position and demonstrate our commitment to maximize shareholder value.”
Armstrong further noted that the proceeds generated from the sale will strengthen the company’s balance sheet and provide additional flexibility to reinvest capital into future projects that support long-term growth. For shareholders, the transaction reinforces Stratus’ consistency in delivering returns through selective divestitures and thoughtful development planning.
The Lantana Place transaction comes at a time when demand for quality mixed-use spaces—particularly those integrating residential, retail, and hospitality offerings—continues to grow across major U.S. metropolitan areas. Austin, in particular, has maintained its position as one of the fastest-growing cities in the country, supported by corporate relocations, workforce expansion in the technology sector, and increasing residential inflow. This favorable environment continues to support strong fundamentals for multifamily and commercial assets, positioning Stratus well for its next phase of development.
Retention of the multi-family project site at Lantana Place along with remaining commercial entitlements illustrates the company’s continued commitment to maximizing long-term value through thoughtful planning and community-oriented growth. As development progresses, these components are expected to serve as future drivers of revenue generation and portfolio expansion.
Stratus Properties’ ability to unlock liquidity without compromising strategic future development potential demonstrates continued disciplined execution and a balanced approach to capital management. The company remains focused on leveraging market opportunities to deliver superior returns and continue meeting shareholder expectations through proactive development and transactional leadership.
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