Stratus Properties unit gets $75 million loan from ACRC Lender

By Sarah Lizee

Olympia, Wash., Oct. 4 – Stratus Properties Inc. subsidiary Santal, LLC obtained a $75 million loan from ACRC Lender LLC, according to an 8-K filing with the Securities and Exchange Commission.

About $57.9 million of the proceeds were used to refinance the Santal property, a 448-unit multi-family property, by repaying in full all outstanding debt under the existing Santal loan agreement.

The remaining proceeds may be used for general corporate purposes including paying down a portion of Stratus’ existing Comerica Bank credit facility.

The maturity date is Oct. 5, 2022, with the possibility of two 12-month extensions.

Interest is Libor plus 285 basis points, provided that the interest rate will never be less than 4.8% per year.

Santal entered into an interest rate protection agreement capping Libor at 3%.

During the six months after the closing date, Santal may not prepay any portion of the loan. Between six and 12 months after the closing date, Santal may prepay the loan with a pro-rated prepayment fee that assures that the lender receives an amount equal to the interest that would have accrued on the loan through the first year of the loan term.

After the first year of the loan term, Santal may prepay all or any portion of the loan without premium or penalty, subject to some costs.

Stratus must maintain a net asset value of $125 million and liquid assets of not less than $7.5 million.

Stratus terminated the existing amended and restated construction loan agreement with Comerica Bank and repaid all outstanding borrowings, which consisted of two construction loans totaling about $57.9 million in full with a portion of the proceeds from the new loan.

Stratus is real estate developer based in Austin, Tex.

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