Developers of a mixed-use development project in Magnolia upped the amount of residential space in response to demand for such property throughout the state, the Austin-based real estate company's CEO said in a recent statement.

Construction began earlier this month at Magnolia Place at Spur 149 and FM 1488, according to an Aug. 16 Stratus Properties Inc. press release.

"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," Stratus Properties Chairman and CEO William H. Armstrong III said in the statement. 

"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."

Magnolia place, among other things, will boast 194 single-family lots and about 500 multi-family units, according to the release.

"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," Armstrong said.

A 95,000-square-foot H-E-B Grocery, part of a privately held supermarket chain based in San Antonio with "H-E-B" standing in for the chain's longtime owner "Howard E. Butt," will shadow-anchor the mixed-use project. Magnolia Place is expected to include 35,000 square feet in four retail buildings, a five retail pad or freestanding outparcel sites that will be sold or leased.

First phase financing to develop Magnolia Place was completed on Aug. 12 when Status subsidiary Magnolia East 149 entered into a construction loan agreement with Veritex Community Bank. The agreement is a three-year construction loan of about $14.8 million with the remaining estimated project costs to be funded by equity contributed to Magnolia East by Stratus.

Stratus also provided a completion guaranty and 25% limited-payment guaranty.