Gaithersburg Landmark Begins $1.2 Billion Transformation into Mixed-Use Residential Hub

WRS Inc. begins the $1.2B transformation of Lakeforest Mall into a 100-acre mixed-use site featuring 1,600 residential units and 35 acres of green space.

By: AXL Media

Published: Apr 15, 2026, 11:38 AM EDT

Source: Multi-Housing News

From Retail Relic to Multifamily Community

The groundbreaking marks the end of a multi-year acquisition phase for WRS Inc., which purchased the various parcels comprising the mall site between 2019 and 2022 for approximately $75 million. Following the mall’s closure in 2023, the site had become a symbol of the "dead mall" era. The new master plan divides the 100-acre property into eight distinct blocks, with current work focusing on the demolition of the existing structure and critical infrastructure improvements, including road networks and storm drainage systems.

The residential component is split among three major players to ensure a varied housing supply. NVR is tasked with developing 600 for-sale homes, while Potomac Housing Development will focus on the social infrastructure of the project by constructing 250 workforce housing units. WRS, alongside an undisclosed partner, will develop an additional 600 apartments. This stratified approach is intended to create a multi-generational community that can withstand various economic cycles.

Strategic Integration of Transit and Green Space

A defining feature of the Lakeforest Redevelopment is its emphasis on connectivity and "placemaking." The project will dedicate 35 acres—over a third of the site—to green space, including a boardwalk surrounding existing ponds, public plazas, and an extensive network of bicycle and pedestrian paths. This focus on outdoor amenities reflects a post-pandemic shift in multifamily development where proximity to nature is a primary driver for tenant retention and property value.

The development is also strategically aligned with Montgomery County’s transit goals. Through a public partnership, the Lakeforest Transit Center will be relocated and expanded within the site. This hub will provide residents with direct access to eight Ride On bus routes and the new MD 355 Flash Bus Rapid Transit system, linking the Gaithersburg community more efficiently to the employment centers of Washington, D.C., located just 24 miles away.