Stratus breaks ground on major mixed-use development in Lakeway

Oct 8, 2014
Austin Business Journal

Stratus Properties Inc. recently broke ground on a $75 million mixed-use project in Lakeway

The Oaks at Lakeway will include a 95,000-square-foot HEB Grocery Co. store, a 31,000-square-foot family fun center with a bowling alley, a 120-room hotel, a single family housing component and some associated office space

The grocery store and first phase of retail is scheduled to be complete by November 2015

The development sits on 90 acres at the corner RR 620 and Main Street

Stratus has been working on the project for four years, assembling nine separate tracts. The relationship with HEB provided the stimulus for the development

“We knew HEB wanted to be in Lakeway,” said Beau Armstrong, chairman and CEO of the Austin-based developer

Previously, Stratus worked with HEB as part of the Circle C Ranch master-planned community in Southwest Austin

Stratus also has plans to build an HEB-anchored center in Magnolia, Texas, northwest of Houston. By the end of November, the company plans to break ground on the first phase of Tecoma, a 650-acre, $700 million mixed-use development in Southwest Austin that has some environmentalists up in arms about the proposal. Armstrong, however, is confident he'll have a building permit in hand soon for the first phase of the project

Lubbock, Texas-based PlainsCapital Bank is providing the nearly $62.9 million construction loan for The Oaks at Lakeway, according to documents Stratus filed with the U.S. Securities and Exchange Commission

Some $35 million will be fully committed at the late November closing with $27.86 million syndicated with other lenders

Stratus also secured $3.7 million from HFF LP to acquire the 142 acres for the project in Magnolia

Armstrong said the Lakeway development will be LEED certified. About 50 percent of the retail portion has been preleased. An in-housing leasing team along with McAllister & Associates is handling the brokerage

Gary Payne, owner of Enviroplan Architects Planners, is the architect and Joeris General Contractors Ltd. is the builder. Bury provided the engineering

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