Austin, Texas, Feb 06 — Stratus Properties Inc. (NASDAQ: STRS) (“Stratus”) today announced that it has completed the previously disclosed sale of Kingwood Place for $60.8 million in cash. The sale generated approximately $27.1 million in pre‑tax net cash proceeds, after selling costs and payment of the project loan. The sales price represents a 9.3% premium to Stratus’ pre-tax net asset value of Kingwood Place, as reflected in Stratus’ Investor Presentation dated March 28, 2025.
Kingwood Place was Stratus’ H-E-B grocery-anchored, mixed-use development located in Kingwood, Texas (in the greater Houston area), including 151,877 square feet of retail lease space, anchored by a 103,000-square-foot H-E-B grocery store, and five pad sites. Stratus completed construction of two retail buildings totaling approximately 41,000 square feet in August 2019, the H‑E‑B grocery store opened in November 2019 and an additional 8,000‑square‑foot retail building was completed in June 2020. Stratus owned approximately 60% of Kingwood Place through a limited partnership with equity investors. After establishing a reserve for the remaining costs of the partnership, Stratus received a cash distribution of approximately $16.2 million in connection with the sale and expects to recognize a pre-tax gain on the sale, net of noncontrolling interests, of approximately $13.7 million.
William H. Armstrong III, Chairman of the Board and Chief Executive Officer of Stratus, said, “The completion of the Kingwood Place sale underscores the effectiveness of our strategy and the talent of our team. Kingwood Place has been a successful project for Stratus, and this transaction strengthens our financial position while demonstrating our commitment to maximizing value for our shareholders as we evaluate the best path forward for Stratus.”
The Kingwood Place transaction marks Stratus’ third recent sale of a stabilized retail project, following the sales of Lantana Place – Retail and West Killeen Market in 2025. In December 2025, the Stratus Board of Directors (“Board”) announced that it had initiated a process to explore strategic alternatives to maximize shareholder value. This process remains ongoing, and there is no timetable set for conclusion of the Board’s evaluation. There can be no assurance as to the outcome of this process, or if a transaction does occur, the timing of any such transaction.