UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of The Securities Exchange Act of
1934
Date
of Report (Date of earliest event reported): May 8, 2007
Stratus
Properties Inc.
(Exact
name of registrant as specified in its charter)
|
Delaware
|
0-19989
|
72-1211572
|
||
|
(State
or other jurisdiction of incorporation)
|
(Commission
File Number)
|
(IRS
Employer Identification Number)
|
|
98
San Jacinto Blvd., Suite 220
|
|
|
Austin,
Texas
|
78701
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Registrant's
telephone number, including area code: (512) 478-5788
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[
]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[
]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[
]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act
(17 CFR 240.14d-2(b))
[
]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act
(17 CFR 240.13e-4(c))
Item
1.01.
Entry
into a Material Definitive Agreement.
On
May 8,
2007, Stratus Properties Inc. and certain of its affiliates (“Stratus”) entered
into an agreement (the “Agreement”) with Canyon-Johnson Urban Fund II, L.P.,
pursuant to which the parties agreed to enter into a joint venture with respect
to the development of Block 21, a $250 million mixed-use development in downtown
Austin, Texas. Under the Agreement, the parties agreed to form a limited
liability company in connection with the project, although the ultimate
formation of the limited liability company will be subject to satisfaction
of
various conditions set forth in the letter agreement. The press release issued
by Stratus pertaining to this project is attached hereto as Exhibit
99.1.
Item
9.01
Financial
Statements and Exhibits
| (d) |
Exhibit.
|
The
Exhibit included as part of this Current Report is listed in the attached
Exhibit Index.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Stratus
Properties Inc.
By:
/s/
John E. Baker
----------------------------------------
John
E.
Baker
Senior
Vice President and
Chief
Financial Officer
(authorized
signatory and
Principal
Financial Officer)
Date:
May
10, 2007
Stratus
Properties Inc.
Exhibit
Index
Exhibit
Number
|
Press
Release dated May 8, 2007, titled “Stratus Properties Partners with
Canyon-Johnson Urban Fund on Block 21 Mixed-Use Development in
Downtown
Austin.”
|
Exhibit
99.1
FOR
IMMEDIATE RELEASE
Contact:
Kristen
Coco or Steve Sugerman
310-689-7539
/ kristen@sugermangroup.com
Eric
Webber 512-225-2600 / eric@webbermcj.com
STRATUS
PROPERTIES PARTNERS WITH CANYON-JOHNSON URBAN FUND ON BLOCK 21 MIXED-USE
DEVELOPMENT IN DOWNTOWN AUSTIN
W
Hotel® and Residences, Austin City Limits Studio, Austin Children's Museum
to
join Austin's vibrant downtown scene
AUSTIN,
Texas (May 8, 2007)—Austin-based Stratus Properties (NASDAQ: STRS) is partnering
with the Canyon-Johnson Urban Fund to provide the equity for Block 21, a
$250
million mixed-use development in downtown Austin. The project includes a
250-room W Hotel® and 200 residential condominiums, a new home for the
world-renowned Austin City Limits television studio, as well as a 2,200 seat
live music venue, the Austin Children's Museum Dell Discovery Center, retail
space, restaurants and an open-air public plaza.
Canyon-Johnson
is a joint venture between the Los Angeles-based Canyon Capital Realty Advisors
and basketball-legend-turned-urban-entrepreneur Earvin "Magic" Johnson, with
almost $1 billion of committed equity to invest in the revitalization of
ethnically-diverse, urban communities across the country.
"We
are
thrilled to be partnering with Canyon-Johnson on this exciting project,"
said
Beau Armstrong, Chairman and CEO of Stratus. "We are on track to break ground
in
September of this year, and believe this development will be a major stimulus
to
the continuing growth of downtown Austin."
"Austin
is a growing, dynamic and entertaining city," said Earvin "Magic" Johnson.
"We
are committed to creating opportunities for the people in Austin, and making
sure that Block 21 reaches its fullest potential."
Canyon-Johnson’s
Managing Partner Bobby Turner added “Block 21, our first investment in Austin,
is exactly the type of exciting revitalization that we have had success with
nationwide.”
The
Canyon-Johnson/Stratus partnership also plans to make Block 21 a model for
environmentally sustainable design. The project is expected to secure the
U.S.
Green Building Council’s LEED Platinum certification, putting it among the first
mixed-use developments built to this extraordinary environmental standard
anywhere in the world.
"We
couldn't be happier working with the Stratus team on this unique project,"
said
Canyon-Johnson Director Neville Rhone. "Stratus has assembled an incredible
team
that will create a truly irreplaceable destination in downtown
Austin."
-
more -
Block
21
2-2-2
Folk
icon
Willie Nelson and nephew Freddy Fletcher are partners in the music venue.
In
1974, Nelson taped the pilot performance for Austin City Limits, paving the
way
for this longstanding innovative music program that is now a staple of the
Public Broadcasting Service. “Our family has long ties to KLRU and Austin City
Limits and we are proud to be involved in this project,” Fletcher
said.
The
planned 35-story structure features the W Hotel® on the lower floors and 200
residential condominiums on the upper floors. The first four floors will
contain
lobby areas for the hotel and residences, retail space with street frontage,
a
spa, swimming pool and pool terrace. Condominium owners will enjoy unprecedented
access to five-star W Hotel® amenities such as concierge services, valet
parking, room and housekeeping services, and in-home spa services.
Construction
of the project is scheduled to commence in September 2007, with pre-sales
for
the condominiums beginning in June 2007. The transaction is subject to the
execution of definitive agreements.
About
Canyon-Johnson Urban Funds
The
Canyon-Johnson Urban Funds (Canyon-Johnson) are the country's largest private
real estate funds focused on the development of urban properties in underserved
neighborhoods. A joint venture between Canyon Capital Realty Advisors and
Earvin
"Magic" Johnson's Johnson Development Corporation, the funds were formed
to
identify, enhance and capture value through the development and redevelopment
of
real estate in densely populated, ethnically diverse urban communities. The
Funds' objectives are to seek current income and capital appreciation and,
in
addition to meeting investment goals, the funds are committed to providing
for
and fostering economic opportunities for the residents of the urban
neighborhoods in which Canyon-Johnson invests. With nearly $1 billion in
committed equity capital, the funds are positioned to facilitate more than
$4
billion in development and revitalization in major U.S. metropolitan areas.
For
more information, visit www.cjuf.com.
About
Stratus Properties
Stratus
Properties engages in the acquisition, development, management and sale of
commercial and residential real estate. Known for the quality of the communities
that it builds, Stratus relies on careful planning and attention to detail
to
create settings that make living, playing and working more enjoyable. Stratus
Properties is a publicly traded company and is listed on the NASDAQ under
the
symbol STRS. Learn more at www.stratusproperties.com.
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