Carr Properties Readies Next Office-to-Residential Project in Metro D.C.
It's the developer's fourth conversion project in the area.
Carr Properties is expanding its residential pipeline in the Washington, D.C., metro with the planned office-to-residential redevelopment of a 186,000-square-foot office building in Arlington, Va., into a 392-unit multifamily community. The redevelopment, taking shape at 4040 N. Fairfax Drive in Arlington’s Ballston neighborhood is expected to begin in summer 2028.
Carr acquired the 10-story property from Ascentris for approximately $12.3 million, about a third of its roughly $35.3 million assessed value, according to public records cited by the Washington Business Journal. The property changed hands in December 2014, when Penzance purchased it from Federal Capital Partners for approximately $89 million, according to Yardi Matrix information. The same source shows that Penzance received a $47.9 million variable loan originated by Affinius Capital in June 2019.
4040 N. Fairfax Drive was completed in 1966 and had a complete renovation in 2012. It’s located steps from the Ballston-MU Metro station in one of Northern Virginia’s most active mixed-use neighborhoods. The multi-tenant asset has approximately 6,000 square feet of retail space and a two-level parking garage.
More D.C., NoVa conversions
The Ballston asset is one of several office-to-residential projects Carr is undertaking across the region. The company is slated to open Margot, a 237-unit multifamily community at 425 Montgomery St. in the Old Town section of Alexandria, Va., later this year. The eight-story, 250,000-square-foot building will have a mix of studios, one-, two- and three-bedroom units.
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Also in Northern Virginia, Carr is expected to deliver 3033 Wilson, a 315-unit residential project, in early 2028. The property is located at 3033 Wilson Blvd. in Arlington’s Clarendon neighborhood. The asset will have 294,000 square feet of residential space and 6,000 square feet of retail. Amenities will include a lounge and club room, a fitness center, pool deck and courtyard.
Last month, Carr secured $92 million in construction financing from PNC Bank and United Bank for 2121 Virginia Ave. NW, a 299-unit office-to-residential redevelopment project in D.C.’s Foggy Bottom neighborhood. Carr acquired the vacant office property in 2025 for $23.5 million. Demolition started in March. The developers expect to deliver the community in the second quarter of 2028. Amenities will include a pool, a fitness center, a resident lounge and garden. The community will also have 30 affordable units.
The project will benefit from a 20-year tax abatement under the D.C. Housing in Downtown project, which supports commercial to residential conversions and redevelopments.
