Carr Properties Acquires 300 Montgomery Street in Old Town Alexandria for 373-Unit Apartment Project

Carr Properties announced Oct. 21 that it has acquired 300 Montgomery Street, a 2.0-acre commercial site in Old Town Alexandria, Virginia, from MC Property, LLC. The firm plans to develop a 373-unit apartment community on the property, with construction expected to begin in spring 2028 and completion targeted for spring 2030. The purchase price was $30 million.

Carr Properties describes itself as an owner, operator and developer of premium office and residential properties. The site sits directly across from Margot, the company's 237-unit residential community at 425 Montgomery Street. Together, the two properties will bring 610 residences to Old Town Alexandria.

300 Montgomery Street Acquisition Details

The property at 300 Montgomery Street, Alexandria, VA 22314, covers about 2 acres, or roughly 87,120 square feet. It is currently occupied by low-rise, midcentury retail known as Montgomery Center. The $30 million price works out to about $80,429 per planned unit and roughly $15 million per acre.

The price is below the $35 million that CarrAmerica paid for the site in 2021. CarrAmerica was founded and chaired by Oliver Carr Jr., while Carr Properties is led by Oliver Carr III.

The planned community will include a rooftop pool and an amenity lounge with views of the Potomac River. Carr said additional details on the residences, design and amenities will be announced as planning progresses.

Holderness on Old Town Demand

"Old Town is a neighborhood with strong long-term residential demand. Its walkability, energy and distinct sense of place make it a market where we see an opportunity to continue investing," said Austen Holderness, executive vice president and chief development officer at Carr Properties.

"Our experience building Margot has given us an opportunity to see firsthand the strength of this market, and 300 Montgomery Street allows us to build on that momentum with another thoughtfully designed residential community in the heart of the neighborhood," Holderness said.

Margot and Carr's Old Town Presence

Margot, at 425 Montgomery Street, is an eight-story, approximately 250,000-square-foot redevelopment of a vacant office building. It has 237 units ranging from studios to three-bedroom apartments, with completion expected in late 2026. The $131 million project received an $84 million construction loan from Kennedy Wilson, and Barings is the equity partner.

Margot's conversion from office to residential use parallels the plan for 300 Montgomery Street, where a low-rise retail block will be replaced with apartments.

Carr Properties' Washington-Region Residential Pipeline

The acquisition adds to Carr's residential development pipeline across the Washington region. According to the company, its other projects include:

• 2121 Virginia Avenue NW in Washington, D.C.'s Foggy Bottom neighborhood, a 299-unit community expected to deliver in the second quarter of 2028.
• 3033 Wilson in Arlington's Clarendon neighborhood, a 315-unit project expected to deliver in 2028.
• 4040 N. Fairfax Drive in Ballston, recently acquired and planned for redevelopment into a 392-unit residential community, with work beginning in summer 2028.

Including Margot and 300 Montgomery Street, the projects total 1,616 units.

Multifamily Market Context

Virginia's multifamily market showed improving demand in the third quarter of 2026. The state recorded 2,485 units of positive net absorption, while 1,284 units were delivered, a 64% decline from the prior-year period. At the same time, 28,711 units remained under construction, up 22% year over year.

Average effective rent across Virginia reached $1,799 per unit in the third quarter, up 1.1% year over year, with rents rising in six of the state's nine metro areas. In Alexandria, multifamily cap rates averaged in the mid-5% range in the second quarter of 2026, with cap rates for Class A and B properties expanding by about 5 basis points. Vacancy was reported at 6.2%.

Sources

• Carr Properties: Carr Properties Acquires 300 Montgomery Street in Old Town Alexandria