AUSTIN – A Magic Johnson investment fund has sold its stake in the W Austin Hotel and the Austin City Limits theater for $187.2 million.
Austin-based Stratus Properties Inc. bought Canyon-Johnson Urban Fund II interest in the downtown Austin property.
Stratus Properties announced Monday that it had completed a refinancing of the W Austin Hotel & Residences and Austin City Limits Live at the Moody Theater mixed-use development. Goldman Sachs Mortgage Company provided a $150 million, ten-year, non-recourse term loan with interest fixed at 5.58 percent and payable monthly based on a 30-year amortization.
The pricing of Stratus’ purchase of Canyon’s interest in the W Austin property compares favorably to recent third party appraisals and hotel sales in the Austin market. Appraisals obtained by banks in the refinancing process reflected valuations of the W Austin property of approximately $239 million. After allocating values to the live music and entertainment venue and office and retail space at the W Austin Property (based on the allocation methodology in each bank’s appraisal), Stratus’ net cost per room was approximately $510,000.
By comparison, the Four Seasons Hotel Austin, built in 1987, was sold in August of 2015 for a reported $677,000 per room.