Carr Properties, Barings Secure $84M Construction Loan for NoVA Housing Project
The developer acquired the property, which housed an empty office building, for about $15 million last year
By Nick Trombola February 4, 2025 7:06 pm
reprints
A joint venture behind a $131 million multifamily development in Northern Virginia has secured a complementary eight-figure loan to help fund the project’s construction.
Carr Properties and new equity partner Barings snagged the $84 million loan from Kennedy Wilson, Carr announced on Tuesday. The financing is tied to 425 Montgomery Street, a 250,000-square-foot, 237-unit redevelopment project in the city of Alexandria. The site previously held a vacant office building, which Carr demolished after it acquired the property in early 2024 for $15.4 million, per property records.
Groundbreaking on the eight-story project will begin next month, with expected completion in late 2026. Cushman & Wakefield (CWK) advised the JV on the financing.
“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,” Kevin Miller, head of acquisitions for Baring’s Eastern U.S. operations, said in a statement.
The project at 425 Montgomery is Carr’s latest since it completed The Elm, a 1 million-square-foot, three-tower complex in Bethesda, Md., in 2021. Carr ultimately sold the two residential towers, together totaling 456 units, to AIR Communities in August 2023 for $220 million, though Carr opted to retain ownership of The Wilson, the 23-story office tower it built adjacent to The Elm.
Other firms are also moving forward with housing development plans in Northern Virginia. A partnership between Wesley Housing and disability advocacy nonprofit Melwood, for example, filed plans last summer to develop a 105-unit, mixed-use complex at 750 23rd Street South in Arlington. Or there’s SCG Development, which last spring landed a $83.5 million financing package — plus Low-Incoming Housing Tax Credits and equity — toward the construction of a 231-unit affordable housing complex between Tysons and McClean, Va.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
