Texas Research Quarter, a $4 billion life science innovation district planned for 200 acres in Plano, Texas, has received developmental approval from the Plano City Council with NexPoint as developer and a financial plan for a tax increment financing reinvestment zone. The TIRZ#5 will enable the city to use a portion of the property tax revenues for public infrastructure projects.

NexPoint, a Dallas-based alternative investment firm, is also seeking similar agreements with other local taxing entities, including Collin County and the Plano ISD. The firm noted that these agreements are part of its attempts to establish a public-private partnership that reflects unified support for the innovation district and would provide funding needed to deliver world-class life science facilities and recruit major companies to Plano.

The goal is to secure agreements from the other taxing entities and complete the broader public-private partnership by the fourth quarter. The first phase of construction is expected to begin once those deals are in place.

The TRQ is centered around a 91-acre main campus that previously served as the headquarters for Electronic Data Systems, a technology services company founded in 1962 by H. Ross Perot. NexPoint acquired the site in 2018 and renamed the project the Texas Research Quarter in May 2023, several months after unveiling the district in February 2023 as TxS, which stood for Technology x Science. Company officials said the new moniker reflected the scope and scale of the project.

The proposed project will incorporate 109 additional acres in the Legacy neighborhood and eventually create more than 4 million square feet of life science facilities. More than 3 million square feet of space will be built on the main 91-acre campus and include research and development facilities and cGMP manufacturing facilities designed with flexibility to accommodate a broad range of life science companies.

Multi-phased plans

According to documents filed with the city of Plano, phase one includes the conversion of a significant portion of the main building on the former EDS site and construction of a new pharmaceutical manufacturing facility. Redevelopment of other office buildings, which have all been empty since 2018, will be done in several phases.

“Those phases are planned to include a research hospital, or other marquee feature, which will distinguish the Texas Research Quarter as a significant destination for life sciences organizations. In addition, further lab, scientific research, pharmaceutical, medicinal, manufacturing, residential, hotel, retail and other mixed-use components are planned,” the City Council agenda memo stated.

The undeveloped offsite parcels are expected to house additional life science assets that will either be incorporated into the master plan in subsequent phases or be developed as build-to-suit projects to meet tenant customization or site selection requirements outside of the main campus.

The TRQ main campus is within walking distance of the Shops at Legacy, a mixed-use development with a wide range of amenities including retail, dining, hospitality and entertainment. Under TRQ’s main campus plans, there will also be several acres of green space open to the public to integrate the property into the surrounding area.

New life science hub

Doug McDonald, director of economic development with the city of Plano, said in prepared remarks the development agreement with NexPoint demonstrates the city’s commitment and readiness to help recruit global pharmaceutical companies to Plano. He noted the life science industry is expanding in the region and they expect the Texas Research Quarter will further solidify the Metroplex’s reputation as the ‘Third Coast’ for biotechnology research and manufacturing.

Late last year, Montgomery Street Partners, J. Small Investments and an affiliate of Lyda Hill Philanthropies secured more than $72 million in financing for the $110 million redevelopment of an office property in Dallas into a life science research and development facility.

NexPoint is growing its life science business through TRQ and other ventures. The firm has been involved in several life science deals, including its investment in IQHQ, a science REIT that operates life science clusters on the East and West Coasts. NexPoint also makes direct investments in biotech companies and other public and private health-care businesses through its corporate credits and equities group.

This story originally appeared on Commercial Property Executive.