FORNEY, Texas — This article was originally published by our content partners at the Dallas Business Journal. You can read the original article here.
Brian Murphy still remembers sitting in the Starbucks at FM 548 in Forney in 2008 after Lehman Brothers collapsed.
At the time, Murphy was a principal at Endeavor Real Estate Group and working to break ground on a massive retail project in Forney that would have been anchored by a Target store. But Lehman's failure marked one of the defining moments of the financial crisis and caused the economy to fall even further.
"We kept pushing it," Murphy said of the retail project. "We thought, you know, maybe things are gonna be fine, but the truth was the market wasn't gonna' be good for five or 10 years."
Despite their best efforts to keep Target involved, Murphy and his partners found themselves sitting in the Starbucks realizing their project had to be put on ice.
"I can't believe all the work we put in this deal," Murphy recalled thinking at the time. "We had all the pieces and now it's dead."
Sixteen years later, Murphy is one of the managing principals at real estate development firm StreetLevel Investments. He stopped by that same Starbucks again before attending a groundbreaking ceremony on Nov. 15 for the Village at Gateway. StreetLevel is developing the 120-acre project planned near North Gateway Boulevard and U.S. Highway 80, set to be anchored by Target, H-E-B and Home Depot. It's believed to be one of the largest retail developments underway in Texas.
For Murphy, the opportunity to put on a hard hat and finally put a shovel in the ground was a moment almost 20 years in making.
"Now everything's come together," he said.
Forney as a 'destination'
Village at Gateway will add to an economic explosion already occurring in Forney.
The fast-growing suburb east of Dallas saw its population increase by an estimated 51.2% between 2020 and 2023, more than any city of at least 20,000 people in the U.S., according to a Dallas Business Journal analysis of U.S. Census Bureau data. Following those rooftops, retail development is flourishing in Forney, including a new Costco store slated to rise at U.S. Route 80 and Clements Drive/FM 460 and a new Tom Thumb grocery store under construction on FM 548. Forney has attracted other power centers, like Victory at Forney, anchored by Walmart, Lowe’s, Aldi and AMC.
The first phase of Village at Gateway, expected to open in Summer 2026, will feature 500,000 square feet of premium retail. A second phase will deliver an additional 200,000 square feet of retail. Next to the project, Texas Health Resources plans to build a 242,000-square-foot hospital and four-story professional office building on 50 acres immediately west of the development.
Besides the big-name anchors, other retailers coming to Village at Gateway include Ross, Five Below, Burlington, Verizon, James Avery Artisan Jewelry, Solis Mammography, Rack Room Shoes, Pacific Dental Services and America's Best Contacts and Eyeglasses. BJ's Wholesale Club also received city site plan approval in October to develop a 107,000-square-foot warehouse within the development.
David Copeland and Ryan Griffin of Edge Realty Partners are handling retail leasing and sales at the property. Murphy said he and the team have been busy meeting potential tenants at national events like the International Council of Shopping Centers convention in Las Vegas. He hopes to announce several restaurants and a sporting goods retailer in the next six to nine months.
Murphy said the development also seeks an entertainment venue — something along the lines of Main Event — where families can host birthday parties and other events.
Forney Mayor Jason Roberson described the groundbreaking of Village at Gateway as "a defining moment in Forney's story" and said the development will "transform" the city.
"We've waited patiently for a development like this one that not only brings economic strength but also provides the amenities and opportunities our community deserves," Roberson said. "The Village at Gateway will be more than a shopping center. It will be a gathering place, a destination and a source of pride for Forney."
The development will benefit the city by providing sales tax revenue and creating jobs, Roberson said. Despite its population growth, Roberson said Forney has lost potential sales tax revenue due to what he called "retail leakage" with residents spending their income in neighboring cities such as Mesquite.
"It's like us drawing a line in the sand and finally saying enough is enough," Roberson said. "It's time for us to reclaim our dollars and keep our money here."
Pieces fall into place
It took many moving parts over the course of almost two decades to make the development of Village at Gateway possible.
After Target backed out during the Great Recession, it took years for Murphy and his partners to get the brand back on board. Even after the recession ended, he said there was a period when retailers hesitated to open new stores because everyone thought online shopping would completely take over.
In 2023, the tide finally turned when Target signed on to anchor a StreetLevel-led development in the Houston area. Murphy said he asked Target to take another look at Forney. H-E-B also joined the conversation and the two companies agreed to become part of Village at Gateway, he said.
Dating back to the start of the project, traffic has been a concern. Forney used to lack easy access off U.S. 80 and train tracks that ran the highway interrupted traffic. The William Herbert Hunt family, the City of Forney and the Regional Transportation Council partnered to build the Gateway Bridge over U.S. 80 and the Union Pacific railroad tracks.
The Hunt family is one of the major landowners in the area and Petro-Hunt LLC is the developer behind the 2,000-acre master-planned Gateway community.
The bridge was part of a $26 million, 2.2-mile project that has been referred to locally as the "bridge to nowhere," because of the lack of development around it. Murphy and other city officials said they hope the days of using the nickname are over.
"I think we can very happily say this bridge is now a bridge to somewhere," Forney Councilwoman Sarah Salgado said. "It's going to be a bridge to something really big for our city."
Financing the project has also been complicated as constructions costs have risen significantly in the past few years because of inflation and soaring interest rates, Murphy said. While he did not provide the specifics of the capital stack, Murphy said Inwood National Bank provided a loan and Staubach Capital has also provided financial backing.
Murphy said his banker at Inwood described the deal as the "hardest loan he's ever done," adding it took participation from two other banks.
An economic incentives package approved by Forney earlier this year will also aid with the project. StreetLevel Investments is in line for more than $34 million in incentives, according to documents obtained by DBJ.
The City of Forney agreed to provide up to $26.75 million over 30 years in the form of rebates on sales tax revenue. The Forney Economic Development Corp. agreed to provide up to $7.5 million in grants. To receive the incentives, Street Level must invest at least $195 million in Villages at Gateway. The project must also create at least 200 full-time jobs within 36 months of the completion of construction and 1,000 jobs within 12 months of the project as a whole reaching completion.
Murphy said the public-private partnership with the city was critical to making the project possible and he looks forward to what the completed development will do to help spur further growth for Forney.
"I don't think anybody has any idea how big an effect this is going to be," he said.
