REAL-ESTATE

Block that includes 'Austin City Limits' venue selling to Nashville firm for $260 million

Shonda Novak
Austin American-Statesman

A deal has been revived for Austin-based Stratus Properties to sell its high-profile downtown Austin city block — home to the "Austin City Limits" music venue and the Austin W Hotel & Residences — to Nashville-based Ryman Hospitality Properties for $260 million, the companies said Tuesday. 

In December 2019, Stratus had announced an agreement to sell Block 21 to Ryman for $275 million. That agreement was terminated in May 2020 by Ryman due to the COVID-19 pandemic. As a result of the termination, Ryman forfeited $15 million of earnest money to Stratus.

Musical group St. Vincent performs during an Austin City Limits taping at ACL Live at the Moody Theater in Austin on Sept. 30. The block that includes the ACL Live venue has been sold to a Nashville company.

On Tuesday, however, Ryman announced once again that it plans to buy the mixed-use Block 21 project from Stratus. The $260 million deal is expected to close later this year.

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The purchase price includes the assumption of about $138 million in existing mortgage debt. In addition, Ryman will receive about $11 million of existing cash reserves, according to the companies.

"We are pleased to again have the opportunity to add this one-of-a-kind asset to our growing entertainment portfolio," Colin Reed, chairman and CEO of Ryman, a lodging and hospitality real estate investment trust, said in a written statement. 

Opry Entertainment, a division of Ryman Hospitality Properties, owns and operates the Grand Ole Opry.

"Much like Nashville, Austin’s leisure and hospitality industry is recovering and is well-positioned for growth in the years ahead," Reed said. "This acquisition allows us to have a meaningful presence in two of the most dynamic music cities in this country and presents many opportunities to showcase the unique music cultures in each city to millions of fans through our Circle TV network."

The Block 21 complex includes Austin’s ACL Live at the Moody Theater venue, where the Austin City Limits television series is filmed, as well as the Austin W Hotel & Residences.

Beau Armstrong, Stratus' chairman and CEO, said the Ryman team will be "the ideal stewards for Block 21 and ACL Live in the future.”

"We remain confident that their experience with entertainment and hospitality properties makes Ryman the right partner for Austin and Block 21,” Armstrong said in a written statement. 

Armstrong said the sale "will provide Stratus with significant financial flexibility to drive additional shareholder returns. The board will carefully consider several compelling opportunities for use of the proceeds, including reinvesting in our robust project pipeline, further deleveraging, and returning cash to shareholders."

Completed in 2010 and located on a full city block behind Austin City Hall, Block 21 is bounded by Second, Third, Lavaca and San Antonio streets.

The block houses ACL Live, a 2,750-seat entertainment venue. Block 21 also includes the W Austin hotel with 251 rooms; the 3TEN at ACL Live club; and about 53,000 square feet of other commercial space.

 “We are thrilled for the long-term opportunities to grow our customer base and create quality entertainment experiences for local music lovers and the millions of tourists who visit Austin each year," Reed's statement said. "We love what Beau and the entire Stratus team created with Block 21 and share their vision for the enormous potential it has to become a world-renowned, music-centric hub in the heart of this great city.”