Item 1.01. Entry into a Material Definitive Agreement.
As previously reported, on September 20, 2021, Santal, L.L.C. (Seller), a wholly
owned, indirect subsidiary of Stratus Properties Inc. (Stratus) entered into an
Agreement of Sale and Purchase (the Purchase Agreement) with BG-QR GP, LLC, a
Delaware limited liability company (Purchaser), pursuant to which Seller agreed
to sell to Purchaser the real and personal property associated with The Santal,
free and clear of all liens associated with the project debt, for a purchase
price of $152 million in cash. The Santal is Stratus' wholly owned 448-unit
garden-style multi-family luxury apartment complex located in Section N in the
Barton Creek community in Austin, Texas.
Effective October 13, 2021, Purchaser and Seller entered into a First Amendment
to Agreement of Sale and Purchase (the Amendment). The Amendment modifies the
Purchase Agreement to: (i) extend the expiration date of the original 30-day
inspection period from October 20, 2021 to November 3, 2021, and (ii) specify
that the Amendment does not extend the date by which the transaction is expected
to close. Accordingly, subsequent to the Amendment, Purchaser has until November
3, 2021 to conduct due diligence of The Santal and may terminate the Purchase
Agreement, in its sole discretion, with or without cause, on or prior to that
date, and the $3.5 million in earnest money will be returned to Purchaser. If
the contract is not terminated before the expiration of the inspection period,
the transaction is expected to close no later than 30 days after the expiration
of the original inspection period, or November 19, 2021.
The foregoing description of the Amendment is not intended to be complete and is
qualified in its entirety by reference to the Amendment, a copy of which will be
filed as an exhibit to Stratus' Quarterly Report on Form 10-Q for the quarter
ending September 30, 2021.
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