Office-To-Residential Conversion In Old Town North Set For Late 2026

ALEXANDRIA, VA — Construction is already underway on an office-to-residential conversion in Old Town North, as developer Carr Properties announced an equity joint venture and closing on construction financing.

The property at 425 Montgomery Street (formerly 901 N. Pitt Street), is a vacant office building that will be turned into a 237-unit apartment building. Carr Properties is developing the $131 million project in the joint venture with Barings and secured an $84 million construction loan with real estate investment firm Kennedy Wilson.

The developer had announced in spring 2024 that it had acquired the site, and development started later in 2024. Construction is already underway, with an expected completion in late 2026. A groundbreaking will be scheduled in March.

"We are excited and pleased to close on these two important capital transactions," said Oliver Carr, the 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."

According to Carr Properties, the new 250,000-square-foot residential building will be eight stories. Apartment units will range from studios to three bedrooms and have community amenities like an outdoor pools and a resident lounge with an amenity center. About one-third of the units will have Potomac River views.

Carr Properties has other projects in Old Town North. The real estate trust developed the Venue condos and townhouses at the former Crowne Plaza Hotel (925 N. Fairfax Street) and is pursuing a conversion of the Montgomery Center block of commercial tenants into a mixed-use development.