With construction underway on the flyover on FM 149 and FM1488 and as suburban sprawl heads westward, developers are eyeing the Magnolia outskirts as the next big area for commercial growth.
The Woodlands-based Greenwood Development Co. has announced the acquisition of 100 acres near the southeast corner of FM 1488 and Spur 149, just outside Magnolia city limits.
John Greenwood, president and owner of Greenwood Development Company, said the project will be a mix of residential buildings and commercial sites.
“What’s happening is all of the growth is heading west,” he said. “And with that growth comes a good mix of residential over there. But we don’t feel that there’s enough retail servicing them, so there’s a demand for this type of development.”
Roughly 50 acres are expected to be used for the residential portion, which will feature a mix of large lots, smaller single-family homes and townhomes. Greenwood said the remaining land will be reserved for commercial padsites, including a site for a big-box retailer, a junior anchor and a number of smaller pad sites for retail and dining options.
He said the project is expected to cost $50 million-$70 million, but the total cost is subject to change as the project moves forward.
“It depends on the type of materials used and the market demand and then there’s the commercial aspect: How much is going to be used for a big-box store or junior box versus smaller pad sites?” he said. “So that’s why there’s a big deviation and that what we’ll find out as we go along.”
To prepare for the expected growth coming to the area, Magnolia city officials have been working to expedite city processes to make it a more attractive option for potential residential and commercial developments.
“The city has focused on infrastructure and delivering services as expediently as possible to developers and growth areas,” said Tana Ross, economic development coordinator for the city of Magnolia. “In addition, our permitting process has been heralded as expeditious as well by homebuilders and commercial developers.”
Ross said the city’s new unified development code allows developers to find the standards required by the city all in one place to use while in the planning stages.
“The UDC and the plan submittal process are also online via the city’s website, which makes Magnolia even more user-friendly for developers,” she said.
The project is expected to break ground in mid-2017 as construction wraps up on the flyover, Greenwood said. Completion of the residential portion is slated for two to three years, and the retail portion is estimated to take three to five years.
Greenwood said as the vacant land along FM 1488 is bought and developed, developers are likely going to continue moving west toward Magnolia.
“Especially projecting five to 10 years out, this site will not be available,” he said. “So we’re trying to be visionaries in a sense that [the demand for retail is] not too far out, but we’re not overpaying for land [if we wait]. We’re being wise with our time money and resources.”
