Developer to build a Denver-inspired ‘micro-district’ in Mansfield’s historic downtown

The city of Mansfield has partnered with a private developer to build a “transformational” mixed-use development in the heart of downtown.

The 4-acre project called Water Mill Square, on the southwest corner of Main and Broad streets, was made official this month when the city approved an agreement with Frisco-based Nack Development.

Water Mill Square will feature a combination of multi-family housing, retail, entertainment, office space and restaurants, the company said.

The developer said it will be taking “specific cues” from a mixed-use development in downtown Denver called The Dairy Block.

The Denver self-proclaimed “micro-district” features restaurants, bars, retailers, live music and art shows. It also includes several boutiques, a co-working space and a hotel.

Similar to The Dairy Block, buildings in Mansfield will back one another to establish a pedestrian promenade for people to walk the development and sit outdoors, Nack Development said.

“The key thing from The Dairy Block will be activating alley and pedestrian space,” Donny Churchman, founder of Nack Development, told the Star-Telegram. “We’re building pedestrian plazas, if you will, and we’ll be activating those with patio space and bring art to the space to make it really vibrant.”

Construction on the first phase of Water Mill Square will begin next summer and will mainly focus on bringing in retail, restaurant and event space on the first floor. A second floor component above the event space could be used for co-working or as an entrepreneur incubator, Churchman said. Construction on the first phase — in the north portion of Broad and Main — will take about 18 months.

Construction on Phase 2 will begin once the city of Mansfield relocates an existing fire station that sits in the middle of the property. Phase 2 construction will involve more retail and restaurant space on the ground floor with four stories of multi-family development above.

The project will bring more than 100 apartment units and about 20 town homes modeled after brownstones found in Washington D.C. and Arlington, Virginia, Churchman said. Phase 2 is expected to begin in about 18 to 24 months — shortly after the city relocates its fire station.

Both phases combined will span 80,000 square feet of retail, restaurant and office space.

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The developer said it plans to target boutique businesses and local talent when leasing up the property.

“What first drew us to Mansfield was their commitment to the old and the embracing of the new to produce something truly unique,” Churchman said in a news release. “Inviting modern ideas that will both keep the past alive, while creating something new and vibrant, to stir curiosities that will only inspire deeper connections to this place we create.”

A historic home and two existing buildings will be relocated under existing plans.

“Our goals are in direct alignment with the city,” Churchman said. “By inviting collaboration to the table, and the sharing of ideas to maintain its original spirit, makes all the possibilities shine a little more brightly.”

Jason Moore, director of economic development for Mansfield, says the city recruited Nack Development after identifying target locations in Mansfield that could be the biggest catalyst for future development. The city agreed on incentives to include grants up to $3.38 million over five years based on performance measures.

“Anytime you can get a catalytic project like this to kickoff, it showcases to brokers and the commercial real estate world that Mansfield is the place to go,” Moore told the Star-Telegram. “We’ve tried very hard to work with the right developers in the right locations.”

About 20% to 25% of land within Mansfield city limits is vacant, and 93% of Mansfield residents commute outside of the city limits for work, Moore said. Mansfield currently doesn’t have any high-end retail or “Class A” office space — considered the highest quality — which Moore thinks the city’s demographics could support.

“The City Council wants to be intentional on how we support residents and businesses here, how we have sustainable and resilient growth moving forward,” Moore said.

Moore said he hopes developments like Water Mill Square with the right mix of workspace, retail, hospitality and housing will create a more walkable community for Mansfield.

“We’re looking at how you create this walkable site, where you can live, work, play and shop,” Moore said. “Council’s vision is how do we create remarkable world-class experiences with Mansfield’s remaining land while enhancing what we have today. Forty years from now, we want people to look back and say the city thought about this appropriately and from a sustainable mindset.”

The Frisco Chamber of Commerce named Churchman entrepreneur of the year in 2022. Churchman’s firm also has a mixed-use development in Old Town Lewisville slated to open in the spring.

Churchman came up with the name Water Mill Square in reference to an old water pump and mill that were once in downtown.

Nack Development has been in real estate in North Texas since 2016. It previously revitalized the downtown historic Frisco area with The Rail District mixed-use development.

“We are marrying old with new,” Churchman said. “That’s what we love to do. We don’t want to forget the history of downtown but also show progress. We’re really good at combining those two to jumpstart a downtown.”