A $1 billion mixed-use district in the Houston suburb Magnolia aims to transform 200 acres of rural land into one of the largest commercial hubs in Montgomery County.
Tannos Development Group’s planned Magnolia Town Center would bring 1 million square feet of construction to the fast-growing suburb about 45 miles northwest of Houston, the Houston Chronicle reported.
The development would include 250,000 square feet of retail, 200,000 square feet of medical and office space, a 350-unit apartment complex, a convention center, a hotel, senior housing and more than 180 single-family homes.
Located west of Highway 249 near FM 1488, the site is owned by Tannos and Arizona-based Maritia LP. Construction is expected to start early next year, pending permitting and development agreements with the city.
Magnolia’s population more than doubled between 2020 and 2024 and could do so again within five years, according to city estimates. But the rapid growth has outpaced infrastructure, prompting the city to impose a moratorium on building permits in late 2022. The moratorium, set to end in August, was a key consideration in project timing.
The town center is designed to address long-standing gaps in retail, professional services and entertainment amenities, set to “give the city something it’s never had before,” developer Louis Tannos said,.
The plan includes 32 acres of parks, trails and lakes. About half the site lies in a floodplain, requiring 1.2 million cubic yards of soil to be excavated for drainage and used to elevate other portions of the property.
Tannos has secured $52 million in tentative land sales under letters of intent with third-party buyers, including a homebuilder, hotel group and bank, he said. He’s targeting about $90 million in land sales.
The project will be largely self-financed, but the developer is in talks with the city to use a tax increment reinvestment zone and public improvement district to reimburse infrastructure costs without issuing city debt.
Construction will begin once zoning, design standards and cost-sharing are finalized.
— Judah Duke
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