Arlington’s city council has approved a $3.8 million Chapter 380 grant to support Sam Mahrouq’s redevelopment plans along East Division Street. The grant, finalized on November 18, will help Mahrouq Enterprises International acquire two parcels: a 0.3-acre site at 806 East Division Street, currently used as a tire shop, and a vacant 0.6-acre tract at 632 East Front Street.
The proposed mixed-use project could include a food hall, multifamily housing, retail spaces, restaurants and structured parking. City staff have described the effort as “catalytic” for the area.
Mahrouq recently began construction on Caravan Court, an upscale hotel with 145 rooms at 205 North Collins Street. This follows an $8 million incentive package he received last year for that development.
Previously, Mahrouq was awarded a $7 million grant for keeping Ikon Technologies in Arlington and working with city officials on long-term plans for Division Street’s renewal. He has stated his goal is for Caravan Court to shift the area’s reputation from being dominated by auto dealerships — many of which he owns — toward something more like Dallas’ redeveloped industrial corridors.
Gus Garcia, Arlington’s economic development director, called Division Street “a crucial link tying together the city’s marquee districts” and said that partnering with Mahrouq fits into ongoing efforts to revitalize the corridor after more than two decades of attempts.
Under the new agreement, there are set milestones: submission of a conceptual brief within 18 months; construction drawings within three years; securing financing by month 54; and starting vertical construction within five years. The city will also enter into a long-term parking lease on the property, which Mahrouq’s group may buy out if all phases proceed.
