News Summary
Northmarq has arranged a $37 million construction loan for the 300-unit Territory at Audubon multifamily development in Magnolia, Texas. This project, set on 11.6 acres, aims to address the growing housing needs in the area. With various community amenities including a clubhouse and fitness center, the development is a response to population growth, which has surged significantly in recent years. Additional developments in the Audubon community further highlight the demand for housing solutions in Magnolia.
Northmarq Secures $37 Million Construction Loan for Multifamily Development in Magnolia, Texas
In a significant move to enhance the housing landscape in Magnolia, Texas, Northmarq has arranged a $37 million construction loan for the 300-unit Territory at Audubon multifamily development. This financing is arranged through a collaboration with Origin Bank, representing the interests of the Dhanani Private Equity Group. The loan is structured with a three-year term, which provides necessary capital for progressing the development project.
Development Details and Location
The Territory at Audubon development is situated on a spacious 11.6 acres at 16000 Audubon Trace, nestled within the larger Audubon master-planned community. This community spans approximately 3,000 acres at the intersection of Texas State Highway 249 and Farm to Market Road 1488. The multifamily project will consist of nine three-story buildings offering a variety of housing options; one-, two-, and three-bedroom units averaging around 953 square feet.
Amenities Galore
Potential residents will benefit from a wide range of community amenities designed to enhance their living experience. Features include an 8,900-square-foot indoor clubhouse, a modern fitness center, and a resort-style pool for leisure activities. Outdoor amenities comprise grilling and yoga spaces, electric vehicle charging stations, bike storage, surface parking, and a dedicated dog wash and park.
Challenges in the Multifamily Construction Market
The multifamily construction market in Houston has encountered significant hurdles over the past 36 months, particularly concerning lender availability. Ryan Watson, a Senior Vice President at Northmarq’s Houston Debt + Equity team, pointed out the importance of the Dhanani Private Equity Group’s established track record in multifamily construction for successfully securing the loan. This marks a crucial step forward in addressing the growing housing demands in the area.
Complementary Developments in the Area
Adding to the momentum in Magnolia, the local developer XAG Group has recently broken ground on another ambitious project called Rasha at Audubon. This new development will comprise 326 units, including five three-story buildings and two four-story buildings. Rasha at Audubon will offer high-end amenities such as stainless steel appliances, quartz countertops, walk-in closets, private balconies, and additional perks like a pool and fitness center.
Additional Plans for the Audubon Community
Further growth in the Audubon community includes a 30,000-square-foot retail center being developed alongside Rasha at Audubon, enhancing the area’s commercial landscape. The Heron Run District, part of this large community project, anticipates the construction of 1,424 additional homes, contributing to a total of 5,000 homes planned for the district. Home prices within the Heron Run District are projected to span from $300,000 to $1 million.
Community Expansion and Population Growth
The ongoing development projects reflect a response to Magnolia’s remarkable population surge, which has increased from 2,414 residents in 2020 to an estimated 6,506 residents by mid-2024, signaling an astounding 169.5% growth within just four years. This growth underlines the immediate need for new housing options and community amenities to accommodate the expanding population.
Future Amenities and Facilities
Anticipated developments also include a $7 million Club Audubon amenity complex, featuring various recreational facilities. This complex is expected to open later this year, further enhancing the community’s amenities and the overall quality of life for residents.
With these developments, Magnolia and the Audubon community are poised for a transformative era that responds to the increasing demand for housing and amenities in this rapidly growing region.
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Additional Resources
- Northmarq Secures $37 Million Construction Loan
- Houston Chronicle: Magnolia New Homes Expansion
- Connect CRE: $1B Mixed-Use Project in Magnolia
- Yield Pro: Rasha at Audubon Overview
- Connect CRE: Magnolia Mixed-Use Project Groundbreaking
- Wikipedia: Real Estate Development
- Google Search: Audubon Community Magnolia Texas
- Google Scholar: Multifamily Housing Trends
- Encyclopedia Britannica: Urban Development
- Google News: Magnolia Texas Real Estate
