ALEXANDRIA, VA. — Carr Properties has formed an equity joint venture with Barings for the development of 425 Montgomery Street, a $131 million project to transform a former office building into multifamily units in Alexandria, roughly seven miles south of Washington, D.C.
The partnership subsequently received an $84 million construction loan from real estate investment firm Kennedy Wilson. Cushman & Wakefield served as advisor for both the equity and debt financings.
The development site, located adjacent to Montgomery Park in the city’s Old Town Alexandria neighborhood, formerly housed a vacant office building. The eight-story, 250,000-square-foot project will feature 237 apartment units in studio, one-, two- and three-bedroom layouts. Amenities will include an outdoor pool and a resident lounge/amenity center, as well as a performing arts venue leased to CityDance. About one-third of the units will offer views of the Potomac River.
Carr acquired the project site (formerly 901 N. Pitt St.) in spring 2024. Construction has commenced, and a groundbreaking ceremony is scheduled for next month. The project is slated for completion by late 2026.
“We look forward to partnering with Carr Properties on this exciting residential investment that we believe will benefit from several tailwinds, including the region’s strong demographic trends, continued rental growth and favorable real estate supply and demand fundamentals,” says Kevin Miller, head of acquisitions – Eastern U.S. for Barings.
A privately held real estate investment trust that focuses on office and residential properties in Washington, D.C., Boston and Austin, Texas, Carr currently owns a portfolio of 12 office properties totaling roughly 4.2 million square feet and two multifamily development sites that will span 549 units. The firm previously built The Elm, a two-tower development in nearby Bethesda, Md.
— Kristin Harlow