W Austin Hotel & Residences Secures Construction Financing to Complete Project on Schedule
AUSTIN, Texas--(Business Wire)-- Austin-based Stratus Properties Inc. (NASDAQ: STRS) and the Canyon-Johnson Urban Funds announced today the closing of a replacement construction loan for the W Austin Hotel & Residences project. The loan was funded by Beal Bank Nevada ("Beal") and originated by Beal`s wholly owned lending subsidiary, CLG Hedge Fund, LLC. The development team secured the financing after determining that the original lender, Corus Bank, N.A., would be unable to fund the loan. The project is under construction, currently at the 25th of 37 total floors, and is on schedule to open in December 2010.
As a follower of the downtown Residential Condo boom, I keep wondering when and if more of these projects are going to run into trouble with the Economy in its current shape. Here’s another one that may be in trouble.
Monday, August 10, 2009, 11:36am CDT | Modified: Monday, August 10, 2009, 2:31pm
Austin Business Journal
Stratus Properties Inc. said Monday it’s urgently looking to secure new financing for its W Austin Hotel & Residences project downtown. But if the developer and its partner Canyon-Johnson Urban Fund II LP cannot line up a new equity partner or come up with the funding another way, it may be “required to delay further construction of the project until additional financing is available.”
“The joint venture partners say they are pursuing other options for financing the future construction costs on the project. Such options may include additional equity contributions by Stratus and Canyon-Johnson, financing from other financial institutions, admitting new equity partners, or a combination of those alternatives.”
“The 36-story W project on downtown’s Block 21 is supposed to include a 252-room W hotel, 165 condo units, 35,000 square feet of office space, retail and restaurant space and a new theater to host KLRU’s Austin City Limits. Construction on the project began last year and this week contractors are set to pour the tower’s 14th floor.”