Carr Properties, a leading owner, operator, and developer of premium quality office and residential properties, today announced that the Company closed on an equity joint venture with Barings to develop 425 Montgomery Street (formerly 901 N. Pitt Street), Carr Properties’ $131 million residential project located in Alexandria, Virginia. The partnership subsequently closed on a $84 million construction loan for the project with real estate investment firm Kennedy Wilson. Construction for the project previously commenced, with the groundbreaking scheduled for next month.
“We are excited and pleased to close on these two important capital transactions,” said Oliver Carr, CEO of Carr Properties. “Through our strong partnerships with Barings and Kennedy Wilson, we look forward to delivering a premier residential apartment community which combines elegant design with sustainable features that will contribute to Alexandria’s continued growth and vibrancy.”
Cushman & Wakefield served as advisor for both the equity and debt financings.
Carr announced the acquisition of the site in Spring 2024, and development began later that year. The entire project is expected to be complete 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,” said Kevin Miller, Barings’ Head of Acquisitions – Eastern US.
“Kennedy Wilson’s construction loan for 425 Mongomery continues our debt platform’s focus on funding high-quality projects in premier locations with reputable sponsors. We are thrilled to work with Carr Properties and Barings, two companies with sterling reputations, to bring this project to fruition in one of the most highly sought after submarkets in Washington, D.C.,” said Craig Lockard, Managing Director at Kennedy Wilson.
Located on a prime site adjacent to Montgomery Park, 425 Montgomery was home to a vacant office building, which is being transformed by Carr into a 250,000-square-foot residential apartment property comprised of 237 residential units. Standing eight stories tall, the development will offer studio to three-bedroom units, as well as best-in-class amenities including an outdoor pool and resident lounge/amenity center. Approximately one-third of the units will boast picturesque views of the Potomac River.
Located within the vibrant Old Town Alexandria market, the development marks Carr Properties’ latest residential project, following the company’s successful development of The Elm. The Elm is a luxury, two-tower residential building in the heart of Bethesda, Maryland, which received numerous awards, including NAIOP DC|MD Awards of Excellence: Best Multi-Family Project and Bethesda Magazine’s #1 Best Luxury Apartment for three consecutive years.