Downtown Arlington to Welcome Transformative Mixed-Use Development

Published on September 03, 2026

The Arlington City Council has approved an agreement that will transform the largest remaining area of surface parking in central Downtown into a major mixed-use development while also delivering new City-owned assets, public parking and infrastructure.

The project, located around the City Office Tower near Abram and Mesquite streets, will include at least 390 market-rate residential units, 31,250 square feet of office space, at least 8,000 square feet of restaurant and retail space, and a 600-space structured parking garage. The private developer, Trammell Crow Company, is required to invest at least $123 million in the development.

But the project is more than a private development. Through the partnership, Arlington will acquire the land underlying the development, a new 31,250-square-foot office for the City's Water Utilities Department, and significant new public infrastructure. The project will also provide 197 free public parking spaces in the garage for 99 years, along with at least 100 additional publicly available surface parking spaces.

“This partnership gives us an opportunity to accomplish several important goals at the same time,” said Lyndsay Mitchell, Arlington's Director of Strategic Initiatives. “We're transforming a large surface parking area into a vibrant mixed-use development, but we're also making long-term investments in public assets that Downtown needs. The result is more housing, restaurants and activity Downtown, along with a new City facility, more public parking and infrastructure that will serve Arlington for decades.”

Public investment creates lasting public assets

The City and Downtown Tax Increment Reinvestment Zone No. 1 will provide approximately $38.4 million in total public participation associated with the project.  Approximately 70% of this public investment is associated with publicly owned assets and infrastructure.

The largest component is up to approximately $16.4 million from TIRZ 1 for eligible public improvements. Those improvements include public parking, sidewalks, streets, water and sewer infrastructure, drainage, landscaping, irrigation and public art. The developer will initially advance the construction costs and may then receive reimbursement for documented eligible expenses.  The $16.4 million in TIRZ 1 funding is planned to come from TIRZ-revenue backed bonds that will be issued later this year upon TIRZ 1 Board and Council approval.

Water Utilities will provide $9.6 million associated with acquisition of the property and up to approximately $9.9 million toward project costs associated with development of its new Downtown office and the property at large. Upon completion, the City will acquire at least 31,250 square feet of the new office building for $1 for Water Utilities administration, engineering and customer service functions.

The remaining City participation includes $500,000 annually for five years following completion of the project.

City retains ownership of the land

The structure of the agreement also allows the City of Arlington to maintain long-term control of an important Downtown property.

Trammell Crow Company will acquire the privately owned property needed for the development and convey that land to the City. Arlington will retain ownership and ground lease the development site back to the developer for 99 years.

The developer is responsible for financing and constructing the private development and must invest at least $123 million in the project. Construction must begin by September 2027 and be completed by September 2031. Because the City owns the land does not mean the private improvements will be tax exempt; rather, these private improvements will be taxable upon completion and will generate approximately $48.6 million in fiscal benefits to the City over 30 years according to an independent economic impact analysis. As it is developed today, the property only generates about $15,000 in property tax revenue annually.

Investing in Downtown's next chapter

The project advances longstanding goals in the Downtown Arlington Master Plan to replace underutilized property with a more active mix of residential, commercial and public uses and create a Downtown destination for residents, visitors and students.

It also supports the transformational redevelopment pillar of Arlington's Economic Development Strategic Plan, which calls for reinvestment in key economic centers and the creation of vibrant destinations.

By combining investments the City is making in its own facilities and infrastructure with significant private development, the partnership allows Arlington to transform 7.3 acres of surface parking while retaining ownership of the land and adding new public assets to Downtown.