The 75,000-sf 7500 Rialto building will be completed by the end of the year, Austin-based Stratus said in releasing its third quarter financial results. Stratus has an $18.4-million loan facility from Comerica Bank-Texas. It currently has $9.2 million available and will use it for the first building and parking garage.
The building is one of two planned for the 170-acre Rialto Drive project near the intersection of William Cannon Drive and Southwest Parkway. Infrastructure development at the site is almost done, the company said. When built out, the development will have 800,000 sf of office and retail space and 400 multifamily units.Representatives from Stratus and Insignia/ESG, which has the 7500 Rialto leasing assignment, were not available Wednesday to talk about pre-leasing activities.
Stratus also said it is moving forward on several residential projects in Austin, though it said reverberations from the downturn in the technology sector have negatively affected lot sales this year. It expects residential sales will be significantly lower than those made in 2000.
The company said a prolonged slump in Austin-area real estate sales may require it to defer some development plans until the economy improves. But, the statement added, "Stratus anticipates that its newly developed properties will attract a high level of interest when completed."
For the third quarter, Stratus reported net income of $3.1 million, 37 cents per share, on revenue of $4.5 million. The sale of an undeveloped 41-acre property in Austin accounted for $3.3 million of the company's revenue. In the 2000 third quarter net income was $200,000, 2 cents per share, on revenue of $2 million. Shares of Stratus stock rose 47 cents Wednesday to $9.20. Over the past year, the price has ranged from $25 last May to $8 in November 2000.
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