Texas-based real estate firm evaluates future as portfolio reaches maturity
Stratus Properties, an Austin, Texas–headquartered real estate developer and investor, has announced that it is reviewing its long-term strategic direction, including the possibility of selling the company, divesting assets, or liquidating the business. As part of this process, the publicly traded firm has engaged independent financial and legal advisers to assist with evaluating its options.
According to a company statement, Stratus’ board of directors will assess a wide range of alternatives, such as a full company sale, share repurchases, or an orderly liquidation aimed at maximizing shareholder value.
“Over the past decade, we have secured key entitlements for our early-stage developments and successfully sold or leased most of our completed properties,” said William Armstrong III, chairman and CEO of Stratus Properties. He added that recent asset sales have strengthened the company’s cash position while streamlining its portfolio. “Given our more mature asset base, we believe this is an appropriate time to evaluate ways to unlock the remaining value of our portfolio and return capital to shareholders in a tax-efficient way.”
Stratus is not alone in reassessing its future amid shifting real estate market conditions. Other Texas-based firms, including Ashford Hospitality Trust, have also indicated they are considering potential business sales.
Alongside its strategic review, Stratus confirmed it has reached an agreement to sell Kingwood Place, a retail and mixed-use development anchored by well-known grocery chain H-E-B, for $60.8 million. The property is located in Kingwood, Texas, approximately 27 miles north of downtown Houston.
Development of the 53.7-acre Kingwood Place site began in late 2018. The project includes a 102,000-square-foot H-E-B store, nearly 49,000 square feet of additional retail space, and five retail pad sites. If the transaction closes as anticipated in early 2026, Stratus expects net proceeds of around $26 million after loan repayment. The sale price represents a premium to the property’s net asset value, with Stratus holding an approximate 60% ownership stake.
The Kingwood Place transaction follows the company’s recent sales of Lantana Place and West Killeen Market, two retail assets divested earlier this year.
At this stage, Stratus’ board has not established a timeline for completing its strategic evaluation, and the company has declined to comment further on potential outcomes.
For the Record: Eastdil Secured is serving as Stratus Properties’ financial adviser, while Jones Walker LLP and Sidley Austin LLP are acting as legal advisers.
Source: Original reporting by Candace Carlisle, CoStar News.
