CHAIRMAN & CEO, STRATUS PROPERTIES
When he builds it, they will come — this visionary changed the face (and the vibe) of downtown Austin.

Walk down 2nd Street, particularly the block between Guadalupe and Lavaca Streets today, and you can’t help but notice a new vibe — a cosmopolitan presence with a twist of homegrown hospitality. From the W Hotel to the Moody Theater, the block is buzzing with activity and is a burgeoning cultural hub on Austin’s downtown grid. The hotel, which opened in December of last year, and the theater, which debuted its first official performance (Willie Nelson) in February and is home to the new Austin City Limits studio, anchor the Block 21 mixed-use development, a project helmed by Austin-based Stratus Properties.

Stratus Chairman and CEO Beau Armstrong has been an instrumental figure behind the changing land — and sound — scape of downtown. Originally from Chicago, Armstrong has witnessed Austin’s steady rise since his days as a UT undergraduate, during a time when he says with a laugh, “there really were no cell phones or laptop computers.” In other words, it was a period that predates our city’s current tech-industry hotbed status. Equal parts shrewd businessman and laidback conversationalist, Armstrong moves deftly from facts and figures to lively anecdotes of his younger Austin experiences.

But as for many Austinites, the Austin that Beau Armstrong first knew was far different from the bustling urban core that it is evolving into today. Having worked in local real estate development for almost 20 years now, he’s had a unique view of the skylines and sidewalks as they continue to take and change shapes. With new developments, come new crowds and the need to cater to different sensibilities. With the 2nd Street District, there are “high quality restaurants, high quality hotels, shops. So I think it’s an adult alternative to East Sixth Street,” he says.

Although other residential Stratus developments have included Barton Creek and Circle C, Armstrong wanted to move in the “urban” direction for a number of reasons, primarily for the fact that, “Austin, unlike a lot of other cities in Texas, really has the ability to have a true downtown.” A downtown that, for Armstrong, is measured by its amenities and character. “I think we really have a unique opportunity here to do a kind of urban living that really is urban living, not ‘faux urban’ — but something that has a little soul to it.”

Maintaining, and enhancing, this “soul” was crucial for Armstrong, who is admittedly wary of large chains and their seeming impersonality. The W, which was “spot on demographically with Austin,” was tapped for its ability to integrate into the existing scene — to make a splash, yet keep an unobtrusive profile. The subsequent pitch-perfect deal with local PBS station KLRU’s Austin City Limits arose from a stipulation in the development contract that required partnership with a nonprofit who was in the active process of finding a new space. “When we became aware that ACL was interested, it just made us all click. It was just a terrific relationship,” says Armstrong. “To be able to piggyback on what they’ve done for 35 years is really wonderful.”

Having the new home of one of Austin’s most hallowed music meccas adjacent to the luxury hotel and residences has infused the development with a distinctly local flavor. Armstrong’s hunch, coupled with the City of Austin’s vision for the downtown area, was strong and resolute despite the economic climate. “We had an incredible team on this and it was nice to work with people who all shared the vision and just wouldn’t give up.” Armstrong would work with any one of the cadre of accomplished professionals who helped make the project a reality again. “From Ken Jones, our lawyer. to Arthur Andersson the architect, Heather Plimmer who did the interior design and KLRU’s Bill Stotesbery — they are amazing people. These were a very pressure-filled couple of years and to be able to look back and still love all of them is pretty special.”

Committed to giving back in more than just the commercial sense, Armstrong takes his role as citizen and community member seriously as well. Having served on the board of Caritas, a local charity organization for several years he remains strongly attached to the cause and dedicated to the work they are doing throughout the Austin area. Armstrong also understands the onus of his professional decisions and their influence on this city that he adores. Humbled by the task of shaping Austin’s future, he readily admits that it’s “upon us not to screw it up, we definitely bear some responsibility on that.”

So what lies ahead for Beau Armstrong and Stratus Properties now that Block 21 is hitting its stride and becoming self-sufficient? The real estate executive says that his firm is interested in new projects, but is also re-evaluating its existing portfolio. Armstrong sees untapped potential in parts of East and downtown Austin (specifically surrounding the capitol complex), but points out that there are still opportunities to be had along the South Congress corridor as well. Although not currently committed to developments in these areas, he’s likely to utilize the same principle that has guided him thus far. “I have been so blessed in my relationship with a man named Jim Bob Moffett. He hired me 20 years ago. He’s been my boss, my partner, my mentor and my friend. He’s still a big part of my life. His advice — which I pass along to everybody — is ‘trust your instincts.’ It’s as simple as that.”