Construction of a mixed-use development in the Knox neighborhood of Dallas has begun after Trammell Crow Company and three other firms secured a $619.4 million loan.

“Knox Street represents our team’s vision to preserve and enhance the authentic character of Knox Street, amplify and expand upon its connection to the Katy Trail, and strategically add new and exciting uses and experiences to solidify the neighborhood as one of the most recognizable shopping, dining, and residential districts in the country,” Joel Behrens, managing director of Trammell Crow in Dallas, said in a news release.

“With its array of premier offerings in an irreplaceable location, this project is positioned to fill a void in the Dallas market and cater to the unmet demand for world-class, mixed-use space in the city.”

Beal Bank of Plano originated the loan for the project near the Katy Trail. It is a joint venture between Trammell Crow, MSD Partners, Highland Park Village Associates, and The Retail Connection.

“We are pleased to have worked with the development team to complete a loan for this one-of-a-kind project,” said Anthony Sassine, executive managing director of Beal Bank’s wholly owned commercial lending subsidiary. “This financing helps ensure this exciting project will generate dynamic new opportunities for this prime real estate in one of the country’s most rapidly developing and prosperous areas.”

Expected to open in 2026, the development will cover 4 acres and offer 1 million square feet of retail, office, residential, and hotel space, including an Auberge Resorts Collection luxury hotel, a 173-unit multifamily tower, and a 48-unit luxury high-rise condominium building.

“We are thrilled to have reached this important milestone and to begin construction on what we believe is the most exciting mixed-use development in Dallas,” said Coburn Packard, partner and head of real estate at BDT & MSD Partners. “The project reflects our commitment to creating incredible spaces and experiences, and we look forward to bringing our vision for Knox Street to life.”

According to Trammel Crow, the Knox Hotel is designed by Martin Brudnizki Design Studio and will include lounges, bars, restaurants, event spaces, an outdoor pool and a full-floor spa. The residences are designed by Dallas-based interior designer Chad Dorsey to feature private amenities that include a clubroom, bar and lounge, entertaining spaces, an indoor pool, and a fitness center.

Although the metroplex has experienced a significant amount of real estate development in recent years, Dallas has seen its share of construction activity decelerate during that same time period, in part due to the City’s periodically difficult building permit process under City Manager T.C. Broadnax.