Goldman Sachs refinances Austin’s ‘Block 21’ with $150m loan

Goldman Sachs Mortgage Company has provided a $150 million loan to Stratus Properties for the refinancing of its W Austin Hotel & Residences and Austin City Limits Live at the Moody Theater mixed-use development in downtown Austin, Texas.

Goldman Sachs Mortgage Company has provided a $150 million loan to Stratus Properties for the refinancing of its W Austin Hotel & Residences and Austin City Limits Live at the Moody Theater mixed-use development in downtown Austin, Texas.

The 10-year, non-recourse term loan was priced at 5.58 percent, payable monthly based on a 30-year amortization.

cf883_53068c18c07a80c45f00006a_block-21-andersson-wise-architects_andrew_pogue_block21_exterior_northwest_tower_at_dusk-530x353The sponsor bought out Canyon-Johnson Urban Fund II’s 58 percent stake in the property for $62 million in September, financing that with an original loan provided by Bank of America and subsequently refinancing the debt with new terms that included a jump in proceeds from $100 million to $130.0 million — and the addition of a $20 million loan from Comerica Bank.

Approximately $130 million of the Goldman proceeds are being used to fully repay Stratus’ obligations under the Bank of America loan, and to pay off the Comerica loan. Stratus now maintains an $8 million investment in the shopping and cultural center, located in Austin’s 2nd Street District.

“The pricing of Stratus’ purchase of Canyon’s interest in the W Austin Property compares favorably to recent third party appraisals and hotel sales in the Austin market,” the firm stated in prepared remarks.

A 37-story building at Block 21 comprises an entire city block of mixed-use development, including W Hotel & Residences with 159 homes and 252 guestrooms. It is home also to the 2,500-seat Austin City Limits Studio Theatre and 25,000 sq ft of shops, restaurants, a spa and entertainment venues.  

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