HALL Structured Finance Originates $58.92 Million Loan for Construction of the Rasha at Audubon Apartments in Magnolia, Texas

DALLAS – November 12, 2024 – Dallas-based HALL Structured Finance (HSF) announced today that the company has closed on a first lien construction loan totaling $58.92 million in connection with the development of a new apartment project in Magnolia, Texas, a rapidly growing suburb of Houston. The borrower is XAG Group, a local, privately-owned full-service real estate company with expertise in commercial development, retail leasing, tenant representation, brokerage and property management. Cullen Atchison of The Houston Group brokered the deal.

The Rasha at Audubon apartments will provide 326 Class A garden style apartment units across five, three-story buildings and two, four-story buildings. Unit interiors will feature climate-controlled corridors, 9-foot ceilings, in-unit washer and dryers, a smart technology package, as well as high-end finishes such as stainless-steel appliances, quartz countertops, walk-in closets, and balconies or patios with private yards in select units. Property amenities include a fitness center, yoga studio, clubroom, lounge, outdoor grills, dog park, pet wash station, and resort-style pool.

The project is part of a 3,000-acre master planned community known as Audubon and will be the first multifamily development. At full build out, Audubon is anticipated to contain over 5,000 single family homes, 630 multifamily units, and more than 700 acres of community parks, nature trails, hike and bike trails and waterfalls integrated throughout the development. Magnolia has seen a very significant growth in population, growing by more than 150% since the 2020 Census. It was ranked as the seventh fastest growing county in the country.

“Magnolia is one of the fastest-growing suburbs of Houston, making it a prime location for the Audubon development,” said Brad Ferguson, Vice President of HALL Structured Finance and the loan originator. “We believe the location, paired with its high-quality residential offerings and amenities, will make this project a long-term success. We’ve enjoyed working with XAG Group – they have been an excellent partner in the loan process, and we look forward to seeing their development come to fruition.”

XAG Group has projects throughout the Houston metroplex as well as Louisiana and Arizona. They currently manage a portfolio of $332 million in assets and $170 million in permit and under construction.

“We are excited to be taking the next steps forward in development of our multifamily project, and it has been a true pleasure working alongside HSF to secure financing,” said XAG Group CEO, Nathalia Naipaul. “Their support has been instrumental in turning our vision into reality. We’re deeply grateful for the HSF team’s partnership and eagerly look forward to bringing this project to life.”