Berkadia Arranges $114 Million Financing for 305-Unit Multifamily Development at West Falls Church Metro

Berkadia has arranged $114 million in debt and equity financing for Rushmark Properties to develop a 305-unit Class A multifamily community immediately adjacent to the West Falls Church Metro Station in Falls Church, Virginia, the firm announced Aug. 28.

The financing package comprises a $92 million senior construction loan provided by PNC and $22 million in preferred equity from FCP. The total capitalized project cost is $136 million, with the $114 million financing package covering approximately 84 percent of that figure. The seven-story building is scheduled to deliver in the second quarter of 2028.

Deal Team and Capital Structure

Senior Managing Directors Patrick McGlohn and Brian Crivella, Managing Directors Yalda Ghamarian, Brian Gould and Bill Gribbin, and Vice President Patrick Cunningham of Berkadia's DC Metro office led the transaction on behalf of Rushmark Properties, a developer with more than 20 completed projects and extensive experience in Northern Virginia.

"Rushmark will create high-quality multifamily housing in one of Northern Virginia's most established and well-connected communities," Crivella said. "The project's immediate proximity to the West Falls Church Metro Station, strong surrounding demographics and limited near-term multifamily supply made it an exceptional investment."

McGlohn described the broader financing environment as selective but active for well-positioned sponsors. "Capital is available for high-quality multifamily development, but lenders and equity investors remain highly selective," he said. "For well-capitalized, experienced sponsors pursuing projects in markets with strong fundamentals, we're seeing competitive interest from multiple sources of capital. Rushmark's experience in the market provided a strong foundation for the financing."

At $136 million for 305 units, the project carries a total development cost of approximately $446,000 per unit. The $92 million senior construction loan equates to roughly $302,000 per unit, while the $22 million preferred equity tranche represents approximately $72,000 per unit.

Project Details and Site Context

The building will rise at the corner of Falls Church Drive and West Falls Station Boulevard, one block from the West Falls Church Metro Station on Metro's Orange Line. The seven-story structure will consist of five levels of wood frame over two levels of concrete, with a 305-space underground parking garage.

Units will average approximately 878 square feet across a mix of one- and two-bedroom floor plans. Planned amenities include work-from-home spaces, a clubroom, speakeasy and game room, resort-style swimming pool, fitness center with yoga studio, pet spa, bicycle storage and repair center, and a residential courtyard.

The project is part of a larger master planning effort across roughly 42 acres in Fairfax County and the City of Falls Church to redevelop former parking lots and underutilized buildings into a mixed-use neighborhood. The broader plan encompasses retail, commercial office, apartments, senior living, for-sale condominiums and for-sale townhomes. A second multifamily building of 266 units at the station is targeted for delivery in 2029, positioning the Rushmark building as the first large rental component in the Metro-station phase of the redevelopment.

Residents will have direct access to Washington, D.C., Tysons and other major Northern Virginia employment centers via the Orange Line, along with proximity to Route 7, I-66 and I-495. Nearby retail and dining destinations include West Falls, Birch and Broad, Tysons Corner, Mosaic District and Founders Row.

Market Fundamentals and Transit-Oriented Context

The Falls Church/Vienna Class A multifamily submarket has recorded sustained rental growth, with rents rising more than 4 percent in 2025 following growth of more than 5 percent in 2024. The submarket's household incomes exceed $150,000 and median home values surpass $800,000.

Metro station areas across the Washington region account for only 3 percent of the region's land but represent approximately 30 percent of total regional property value — roughly $330 billion — 30 percent of annual property tax revenue at $3.2 billion, and 40 percent of regional jobs, totaling 960,000 positions, according to a 2024 Metro study.

Washington Metropolitan Area Transit Authority General Manager and CEO Randy Clarke expressed support for the project. "We applaud Rushmark Properties and Federal Capital Partners for this investment in transit-oriented development. This partnership creates economic opportunities through jobs and new tax revenues," Clarke said. "More housing near transit means more access to opportunity, stronger transit ridership, less traffic on our roads, and a better quality of life for residents across the region."

About the Parties

Berkadia is a commercial real estate company offering investment sales, mortgage banking and servicing. Rushmark Properties is a Northern Virginia-based developer with more than 20 completed projects. PNC provided the senior construction debt, and FCP contributed the preferred equity component of the capital stack.

Sources: Berkadia