MANSFIELD, Texas — Editor's note: The article originally appeared in the Dallas Business Journal here.
A new mixed-use project with a price tag of up to $500 million promises to bring development of a scope previously unseen in Mansfield.
Chisholm Flats has staked out a 54-acre site for the project, located at the northeast corner of Lone Star Road and Highway 287. The expansive development, called the Village at Southpointe, boasts offerings including medical office, upscale multifamily and restaurant and retail space.
The Village at Southpointe will create an anticipated 637 new jobs, according to information provided by Chisholm Flats.
The city has backed the project with incentives including a TIRZ reimbursement and Chapter 380 economic development agreement. The project will feature extensive civic plaza space, and city documents point to the upcoming site as a likely entertainment destination.
PHOTOS: $500 million development coming to Mansfield
The development is projected to generate $64.6 million in ad-valorem revenue over the next 30 years for the city. PlainsCapital Bank is providing debt for the project and Chisholm Flats isn’t using outside equity.
Upon completion, the Village at Southpointe will feature between 800 and 1,000 multifamily units, between 80,000 to 100,000 square feet of medical office space and restaurant and retail space designed to recruit destination dining. Boutique hotel and corporate office development are also on the table. The final amount that developers are projecting to spend on the project will be between $350 and $500 million.
“There will be nothing like it in Mansfield,” said Dave Berzina, partner at Chisholm Flats.
Berzina heads the company along with Robert Jonas, also a partner at Chisholm Flats. Berzina previously worked with the Fort Worth Chamber, and Jonas has worked as a developer and lawyer.
When the duo got together to start developing, the first thing they did was drive around for hours on end looking for sites. They found the property in Mansfield during one of those car rides.
A Chicago-based firm previously owned the site. That firm’s forte was residential, and the company knew the site was better suited for commercial development.
Once the Chisholm Flats started working with the city for the eventual development, it became clear that the original zoning for the site didn’t work and ran counter to what the city wanted to see on the property. Together, Chisholm Flats and the City of Mansfield worked to create an updated plan for the land.
“Thankfully, the city was willing to work with us in getting some higher value zoning on the site for some multifamily to bring some density,” said South Cole, principal at Apogee Partners and project manager for the development. “They had an appetite for some nicer commercial on site, which we knew would require the density. It was a pretty big ask from the city, but also a pretty big offer from the city.”
The zoning process was extensive, but the final zoning for the site allows for more density than what's typical. Chisholm Flats had to shoulder the carrying costs, but the city was an active partner.
“It’s definitely a very engaged city council and city management staff,” Cole said.
Chisholm Flats had to give up millions of dollars worth of potential development to include the core civic space within the project. The project will feature an extensive walkway system and architectural features such as a water mill.
“We’re trying to do a really nice job and put in some destination restaurants,” Jonas said. “In order to (get) destination restaurants, you have to have a really nice destination place for them to come to. … That’s why we’re giving up millions of dollars and spending millions of dollars (on) that civic space.”
Mansfield has seen a wave of development activity recently. Admiral Legacy Investments is planning to develop 240,000 square feet of office space in Mansfield, called The Mansfield Innovation Community, or The MIC, which will serve as the epicenter of the Mansfield Innovation Corridor. The city is investing heavily in the deal, intent on fostering significant industry growth in the community.
The city recently passed incentives for a project that could eventually host film production and create over 2,000 full time jobs.
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