$150 million refinancing arranged by HFF for Block 21 mixed-use development in Austin, Texas
DALLAS, TX – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged a $150 million refinancing for Block 21, a mixed-use development containing the 251-room W Austin Hotel & Residences, 2,750-seat Austin City Limits Live at The Moody Theater music and events venue (ACL Live) and almost 60,000 square feet of Class A office and retail space in downtown Austin, Texas.
HFF worked on behalf of the borrower, Stratus Properties Inc., to place the 10-year, fixed-rate loan with Goldman Sachs. Loan proceeds were used to refinance existing debt.
Block 21 features panoramic views of Lady Bird Lake (formerly Town Lake), the Texas Hill Country and downtown Austin, a city known as the “Live Music Capital of the World.” The property is located at 200 Lavaca Street in downtown Austin’s 2ND Street District, an urban neighborhood with 225,000 square feet of retail, restaurants, entertainment venues and residences. The development is within walking distance to the lake and its surrounding outdoor and recreational space, Austin City Hall, the Sixth Street entertainment district and the Austin Convention Center.
Completed in 2010, the 37-story Block 21 is LEED Silver certified in addition to being certified by the Austin Energy Green Building Program. The W Austin Hotel & Residences features 10,500 square feet of meeting space, the AWAY Spa, WIRED business center, WET outdoor pool and bar, FIT fitness center, rooftop pool and cabanas, TRACE restaurant and The Living Room lobby bar and cocktail lounge. The AAA Four Diamond hotel’s 251 guest rooms include 32 suites in the lower portion of the tower. Not included in the financing are the 159 residential condominiums that comprise the upper portion of the tower. Block 21 is home to ACL Live, which functions as a live music venue, high definition production studio and private events space on the second through fourth floors of the building. The venue floor is 9,600 square feet and can accommodate general admission of 2,750 people and up to 3,000 for special events. It’s the site of the KLRU-TV produced PBS program Austin City Limits, the longest-running music series in American television history, which has hosted acts like Sting, Coldplay, Jay-Z, and Lady Gaga and Tony Bennett. In 2014, the venue was named “Venue of the Year-Small Capacity” by the Academy of Country Music. The year ACL Live opened, it won the 2011 Pollstar Award for “Best New Major Concert Venue”. Block 21 has 18,327 square feet of ground floor retail space that is 98.6 percent leased to Urban Outfitters, Starbucks and Willie’s Roadhouse Sirius XM station, and 39,328 square feet of fully leased office space.
The HFF team was led by senior managing director Whitaker Johnson and managing director John Bourret.
About Stratus Properties Inc.
Stratus Properties Inc. is a diversified real estate company engaged primarily in the development, management, operation and/or sale of commercial, hotel, entertainment and multi- and single-family residential real estate properties located in Texas, primarily in the Austin area. The firm generates revenues from sales of developed properties, from its hotel and entertainment operations and from rental income from its commercial properties. For more information, visit www.stratusproperties.com.
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.