MAGNOLIA, Texas – (Realty News Report) – Stratus Properties, an Austin-based developer, announced it had obtained construction financing and has started an H-E-B grocery shadow-anchored, mixed-use project in Magnolia, near Houston.
The development, called Magnolia Place, will have four retail buildings totaling 35,000 SF, five retail pad sites, 194 single-family lots and 500 multifamily units. Earlier this month Stratus began construction on the first phase of development, which is expected to consist of two retail buildings totaling 19,000 SF, and the road, utility and drainage infrastructure necessary to support the entire development. H-E-B recently began construction on its 95,000-SF grocery store on an adjoining 18-acresite owned by H-E-B.
William H. Armstrong III, Chairman of the Board and Chief Executive Officer of Stratus, stated, “We are pleased to announce that we have completed financing for the first phase of development of Magnolia Place, one of our projects in the Houston area. In response to the increased demand for residential properties throughout Texas, we have increased the residential component in the new development plans for this project. We continue to evaluate a sale of the land for the single-family residential component, and we look forward to further enhancing the value of this property for our shareholders.”
Financing for the first phase of development of Magnolia Place was completed on August 12, 2021, when Magnolia East 149, L.L.C., a subsidiary of Stratus, entered into a construction loan agreement with Veritex Community Bank, which provides for a three-year construction loan in the amount of approximately $14.8 million secured by the project. The remaining estimated project costs are being funded by equity contributed to Magnolia East by Stratus. Stratus provided a completion guaranty and 25-percent-limited-payment guaranty.
In November 2017, the city of Magnolia and the state of Texas approved the creation of a municipal utility district which will provide an opportunity for Stratus to recoup road and utility infrastructure costs.
H-E-B is developing a number of new stores in the Houston area. In Marvel, south of Houston at Highway 288 and Texas 6, Weitzman is developing a grocery-anchored center. Manvel Town Center is designed to incorporate as much as 1 million SF of retail space to be developed in phases. The anchor for the first phase is H-E-B, which plans a 90,000-SF store. Other concepts in the first phase include pad users such as Whataburger, McDonald’s and Heartland Dental.
Aug. 16, 2021 Realty News Report Copyright 2021
File: HEB Anchoring Magnolia Project
Rendering Image: Courtesy Stratus, Business Wire
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File (2) Stratus Properties. HEB Anchoring Magnolia Project near Houston. Weitzman. Veritex Community Bank, Whataburger, McDonald’s,Heartland Dental.