The Prosper Town Council approved the zoning change and development agreement earlier this month.
PROSPER, Texas — Read this article and more North Texas business news from our partners at Dallas Business Journal.
A luxury mixed-use development that will combine residential, commercial and entertainment space is expected to break ground in Prosper later this year, developers told the Dallas Business Journal.
Earlier this month, the Prosper City Council approved a zoning change and development agreement that will allow Frisco-based developer Capitalize Ventures LLC and design firm Gensler to move forward with their plans. The companies are now working on obtaining building permits and hope to break ground on the first phase of the Prosper Arts District as soon as possible.
The project, to be built on 35 acres at the northwest corner of the Dallas North Tollway and Prosper Trail, would be the first large-scale mixed-use development north of U.S. Highway 380, according to supporters.
Krishna Nimmagadda, co-founder of Capitalize Ventures, said the district could create more than 400 full-time jobs and generate more than $1 billion in economic impact over the long term, and developers expect the district to cost about $300 million to build out overall.
The plan doesn’t include art galleries — the district’s name comes from a goal to move away from big-box retail stores and instead promote boutiques, creative shops and restaurants — but it also plans for certain hotels and retail spaces to feature artistic elements.
Due for completion by late 2026, the first phase will include infrastructure such as a planned water feature running through the project, a sports-specific hotel, parking, and retail space. Four phases in total are planned.
When complete, the Prosper Arts District will feature three hotels, more than 500 apartments and a shopping village centered around a water trail. One of the hotels will be dedicated to weddings and could become a destination for such events. A sports-focused hotel is expected to be announced in the coming months.
The project was originally scheduled to begin in time for the 2026 FIFA World Cup, but finding the right partners and architects to build a truly unique district caused delays, Nimmagadda said.
“We just wanted to do this right. We’ve been working on this project for over two years,” he said. “Because this needs to be a unique, legacy project, we had to go through a lot of thought into the right design.”
Nimmagadda, a McKinney resident who previously worked for professional services firm Accenture, is the driving force behind the project. His company owns more than 500 acres in the region, including more than 250 acres of commercial land in Frisco and Prosper and a similar amount in Celina. Nimmagadda and partners Anil Sunkara and Satya Donepudi founded Capitalize Ventures in 2021.
Straddling Collin and Denton Counties, Prosper is one of the fastest growing cities in the United States, with the latest U.S. Census Bureau estimates showing population growth of nearly 11% from 2022 to 2023. While existing retail centers such as The Gates of Prosper are home to big-name retailers, Prosper lacks experiential destinations, with many residents opting to visit Legacy West in Plano for dining and shopping.
Nimmagadda hopes the area will create a “unique atmosphere” that will draw people from across the region.
“For me and my firm, we want this to be a heritage product, something we can all be proud of,” he said, adding that he hopes the district will one day be on display in Gensler’s offices.
Nimmagadda, a former well-known technology entrepreneur in California who sold his last company to Accenture, moved to the Dallas area with his family about seven years ago and has since been using his civil engineering and business experience to work on development projects in the area.
The district’s design aims to reflect the character and culture of Prosper, a once small farming town that has quickly become one of North Texas’ newest boom cities. The Prosper Arts Court may feature railroad tracks and repurposed old grain silos, the backdrop for many family photos.
