AUSTIN, TX – Stratus Properties announced that its subsidiary The Saint Mary, L.P. completed the sale of The Saint Mary, a 240-unit luxury, garden-style apartment project in the Circle C community in Austin, Texas, for $60 million, or $250,000 per unit.
William H. Armstrong III, Chairman of the Board, President and Chief Executive Officer of Stratus, stated, The sale of The Saint Mary is another example of the substantial value we make for our shareholders with our proven approach to developing and owning well-located properties in strong Texas markets. In fact, we believe that the per unit sales price for The Saint Mary is the highest ever recorded in the Austin MSA for traditional garden-style surface-parked apartment product.
Mr. Armstrong continued, I am proud of our team for navigating the highly complex entitlement, design and leasing processes that maximized this development opportunity to meet market demand. Our team s knowledge of and deep relationships in the market have enabled Stratus to raise third-party equity capital, arrange bank financing, oversee construction, expedite lease-up and manage and close the sale during a pandemic – all in less than three years. We look forward to reinvesting the proceeds of the sale in our robust pipeline of opportunities.
After closing costs and payment of the outstanding construction loan, the sale generated net proceeds of approximately $34 million. Stratus anticipates receiving approximately $21.3 million from the subsidiary in connection with the sale. Stratus expects to recognize a pre-tax gain on the sale, net of gain allocated to noncontrolling interests, of approximately $14 million.
The sale generated an IRR to Stratus of approximately 62% calculated based on the company s carrying value of the property contributed to the project, resulting in an equity multiple of 3.55x. The sale price reflects a 28% premium to the yucky value for The Saint Mary used in the calculation of Stratus estimated net asset value as of December 31, 2019 as shown in Stratus Investor Presentation dated March 25, 2020 available on Stratus website.
The Saint Mary, a one and two-bedroom apartment property, features a contemporary design targeted to appeal to the technology-based workforce in Southwest Austin. Amenities include a fitness center, resort-style infinity-edge pool, and nearby dining, retail, entertainment and recreational options, including well loved hiking spots The Barton Creek Green Belt and Slaughter Creek Trail. The project was approved for the Austin Energy Green Building Program. Construction commenced in June 2018 and was completed in December 2019. The first tenants took occupancy in July 2019, and the project was approximately 85% leased on the date of sale.

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HAMILTON, NJ – Total construction starts lost 5% in December, falling to a seasonally adjusted annual rate of $784.3 billion. Nonresidential building starts fell 11% during the month, while nonbuilding starts were 5% lower. Residential starts were essentially flat over the month. Starts were lower in three of the four regions in December; the South Central was the only region to post an increase.
For the full year, total construction starts fell 10% to $766.3 billion. Nonresidential building starts saw the steepest drop, losing 24%, while nonbuilding starts fell 14%. Residential construction starts finished 2020 up 4% thanks to strong single-family activity. In December, the Dodge Index fell 5% to 166 (2000=100) from the 174 reading in November. For the full year, the Dodge Index averaged 163, a 10% decline from 2019 s average.
The roller coaster year of 2020 is over, but not forgotten, stated Richard Branch, Chief Economist for Dodge Data & Analytics. The scars from the pandemic and recession will be long-lasting and resulted in significant declines across most construction sectors. Single family housing, warehouse, and highway and bridge starts were bright spots that cannot be understated for their gains. There will be hard months ahead for the economy and for construction starts as COVID-19 cases mount. But, the continued rollout of vaccines means 2021 will be a better year.
Nonbuilding construction fell 5% in December to a seasonally adjusted annual rate of $185.3 billion. Declines were broad based across the sector, with highways & bridges, environmental public works and miscellaneous nonbuilding starts all falling in December. The utility/gas plant category rose 70% in the month due to the start of two large power generation facilities.
The largest nonbuilding project to break ground in December was the $1.2 billion Traverse Wind Energy Center, a 999 MW wind facility spread across Blaine, Custer, and Kingfisher counties, OK. Also starting during the month was the $1.0 billion Three Rivers Natural Gas Power Generating Energy Center in Morris, IL and the $555 million West Lake Corridor Project, which is an 8-mile extension of the Northern Indiana Commuter District s South Shore rail line in Dyer, IL.
For the full year, nonbuilding starts fell 14% from 2019 to $181.5 billion. Significant pullbacks in starts were seen in the utility/gas plant category as well as in miscellaneous nonbuilding. Environmental public works starts dropped 5% in 2020, while the highway and bridge category saw an 8% increase in starts.
Nonresidential building went 11% lower in December to a seasonally adjusted annual rate of $225.3 billion following a sizeable increase in the previous month. Commercial starts fell 23% over the month as office, hotel, and warehouse starts all posted double-digit declines. Institutional starts fell 5%, while manufacturing starts rose 59%, thanks to the largest nonresidential building project to get started in December, the $600 million Gulf Coast Ammonia Plant in Texas City, TX. Also starting in December were the $341 million Orlando Health Jewett Orthopedic Hospital in Orlando, FL and the $325 million University of Massachusetts Education and Research Building in Worcester, MA.
In 2020, nonresidential building starts lost 24% to $239.9 billion — the lowest level since 2015. Commercial starts tumbled 26% over the year, with warehouse construction eking out a 1% gain in 2020. Institutional starts fell 13% last year, while manufacturing starts dropped 59%.
Residential building starts fell by less than one percentage point in December to a seasonally adjusted annual rate of $373.7 billion. Multifamily starts posted a solid 24% increase for the month, while single family dropped 7%.
The largest multifamily structure to break ground in December was the $400 million second phase of the Veyoel Moshe Gardens Residential building in Kiryas Joel, NY. Also starting were the $200 million 300M NE Street mixed-use building in Washington, D.C. and the $167 million AVA Arts District Live/Work Complex in Los Angeles, CA.
For the full year, residential starts were 4% higher than in 2019 at $344.8 billion. Single family starts were up 11%, while multifamily starts were 11% lower.

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BELLEVUE, WA – Aegis Living, a leading provider of helped living and memory care, and Blue Moon Capital Partners LP, a prominent senior housing private equity investor, announced a second joint venture with the acquisition of 10 communities across California, Washington and Nevada.
The largest deal in Aegis Living’s 24-year history includes more than $350 million in senior living real estate, supporting the company’s dedication to owning its communities and goal of growing rapidly over the next 10 years. The 702-unit portfolio consists of helped living and memory care apartments all in urban, high-barrier-to-entry markets with attractive demographics and limited existing supply. Aegis Living previously operated these communities under a lease. With today’s announcement, Aegis has ownership in more than 70% of its 32 communities.
“At a time when we are seeing many operators and traditional senior living investors leave the market, we are leaning in,” said Aegis Living President Kris Engskov. “The challenges presented by COVID-19 have made clear just how critical senior care is and will increasingly become. We have learned a fantastic deal during the pandemic and look forward to putting many of those lessons to work to keep even more seniors safer, more pleased, more purpose-driven and more engaged than ever as we continue to grow.”
The pandemic has disproportionately impacted senior living communities across the country. Amid the temporary industry downturn, Aegis Living kept its 32 communities thriving and is well-positioned for the looming resurgence in the demand for high-quality senior living options. Census Bureau data projects that one in every five Americans will be of retirement age in less than 10 years; not only will senior living demand naturally increase, the style and manner will continue to evolve based on each generations’ expectations, including COVID-19’s impact.
“The future of the senior living industry has never been stronger and those with a robust owner-operator presence will be best positioned to meet the growing demands for high-quality senior helped living and memory care,” said Dwayne Clark, Aegis Living founder, CEO and chairman. “We are just getting started on our plans to double in size by 2030.”
In 2018, Aegis Living and Blue Moon established its first joint venture agreement with an initial buy of three separate Class A, high-quality, high-value communities.
In addition to the acquisition of these 10 communities, Aegis Living has eight additional communities in development with several opening their doors in 2021: Aegis Living Bellevue Overlake (Spring 2021), Aegis Living Kirkland (Summer 2021), and Aegis Lake Union (Fall/Winter 2021).
“We are proud to grow our successful relationship with Aegis Living, following our first joint venture with them two years ago,” said Kathryn Sweeney, co-founder and managing partner at Blue Moon. “Dwayne Clark and the Aegis Living team continue to show they are willing to innovate and stay well ahead of the curve to serve our seniors. Their energy, passion, and skill have met the COVID-19 challenges presented this past year for the benefit of residents, families, staff and investors. We are excited to partner with Aegis and support their initiatives in the years ahead.”

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