Stratus Properties developing Magnolia Place
On 12 August 2021, the real estate company Stratus Properties’ Inc (NASDAQ: STRS) announced new development plans for Magnolia Place, an H-E-B, LP (“H-E-B”) grocery shadow-anchored, mixed-use project in Magnolia, Texas.
The company has financed the project’s first phase with a construction loan of $14.8 million for three years with the Veritex Community Bank.
The Chairman of the Board and CEO declared that the financing for the development of one of the projects in the Houston area – Magnolia Place has been completed. They have increased the residential element in the development plans to meet the region’s increased demand for residential properties.
The remaining estimated costs of development plans under the project will be funded by equity contributed by the company to its subsidiary ‘Magnolia East.’ The company provided a 25-percent-limited-payment guaranty besides a completion guaranty.
Stratus Q2 2021 Results
The Austin, Texas-based enterprise STRS’s second-quarter 2021 results show a loss of $10.2 million, $1.23 per share. In Q2 last year, it reported a revenue of $11.6 million. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) has been $4.4 million in Q2 2021, which was $12.3 million in Q2 2020. Since the start of the year, its stocks have increased 14% and 45% in the last 12 months. It has sold one Amarra Drive Phase III lot during Q2 this year for $0.6 million.
Stratus’s Other Projects 2021
During Q2 2021, the company started The Saint June project within the Amarra subdivision in Barton Creek. In June, the company financed it with a construction loan of $55 million. In July, an independent equity investor secured a 65.87% interest in The Saint June partnership for $16.3 million.
The company’s W Austin Hotel has continued to improve some of its significant metrics during Q2 of this year.