Gaylord Texan owner buys block that includes Austin City Limits venue for $260 million

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. 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. Ryman is best known for its ownership of the Gaylord resorts, including the Texan in Grapevine.

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. A division of Ryman Hospitality Properties also 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.”