The second phase of Hall Arts ceremonially broke ground Friday. The 25-story condo tower and 183-room hotel development will deliver in fall 2019.

Hall Group founder Craig Hall said the underground parking garage throughout most of the site, the challenges of developing condos and hotels compared to offices and the late timing in the cycle make this project his most difficult yet.

Hall Arts Residences will have 44 condos ranging from 1,600 SF to a 10K SF penthouse with an average size of just under 4K SF. HKS designed the tower with interior design by Emily Summers Design Associates. The Office of James Burnett (the architects behind Klyde Warren Park) designed the landscaping.

Hall Group is pursuing WELL certification for the tower. Hall Arts Residences would be the first residential building in Texas to receive the certification. Hall is also seeking LEED Gold for the building.

The residences will be the highest-end product in the central business district, Hall said. Hall and his wife, Kathryn, will move into the sixth and seventh floors of the tower.

Just east of KPMG Plaza on Ross Avenue, Hall Arts Hotel, an independent concept that will be operated by Crescent Hotels & Resorts, will have interiors by Bentel & Bentel Architects. Craig and Kathryn Hall’s personal art collection will fill the hotel, along with many new artworks.

Titan Securities will own the portions of the hotel that serve alcohol, including two restaurants, one facing Flora Street and another closer to Hall Collection sculpture walk.

Hall said the $250M Phase 2 is largely financed with equity, along with some EB-5 money, similar to how Hall Group financed Phase 1, KPMG Plaza at Hall Arts. The third phase of development has taken a backseat to Phase 2, Hall said.

The final phase of Hall Arts will likely have about 93K SF of mixed-use anchored by offices and rival the height of Chase Tower.