FCP Provides $22 Million Preferred Equity for Rushmark Properties' 305-Unit Transit-Oriented Development in Falls Church

FCP has committed $22 million in preferred equity to support the development of a 305-unit, seven-story apartment community adjacent to the West Falls Church Metro Station in Falls Church, Va., the Chevy Chase, Md.-based real estate investment firm announced Aug. 31.

The investment, made through FCP's Structured Investments platform, partners the firm with Rushmark Properties, a multifamily developer active in the Greater Washington, D.C. area and throughout the Southeast. The project is located at 7040 Haycock Road and is part of a broader 42-acre, master-planned mixed-use redevelopment effort spanning the City of Falls Church and Fairfax County.

Capital Stack and Project Economics

The 305-unit development carries a total capitalized cost of approximately $136 million, translating to roughly $446,000 per unit. FCP's $22 million preferred equity tranche is one component of $114 million in total financing arranged for the project. PNC Bank provided a $92 million senior construction loan, with FCP's preferred equity filling the remaining structured financing layer.

Patrick McGlohn, Brian Gould, Brian Crivella, and Pat Cunningham of Berkadia represented Rushmark Properties in arranging the financing.

The seven-story mid-rise building will include a 305-space underground parking garage. Fairfax County site plans indicate the development will incorporate 32 income-restricted workforce dwelling units alongside its market-rate apartments. HITT is serving as general contractor.

Construction on the broader mixed-use project began in late 2025. The 305-unit building is scheduled to deliver around the second quarter of 2028.

Transit-Oriented Location and Master-Planned Context

The Rushmark development is positioned as Building D within the West Falls Church Metro redevelopment, situated at the intersection of Falls Church Drive and the extended West Falls Station Boulevard. The site provides direct access to the Orange Line, offering car-free connectivity to job centers in Arlington, Tysons Corner, the Dulles Corridor, and Washington, D.C.

The surrounding community along the Broad Street corridor includes retail shopping, grocery stores, and restaurants, and the project falls within a top-rated school district, according to FCP.

The broader 42-acre redevelopment effort — spanning approximately 24 acres at the Metro station site — is being developed in coordination with Rushmark and EYA. The full program at the Metro-station portion includes 810 multifamily units, 90 townhomes, up to 110,000 square feet of office space, and up to 10,000 square feet of ground-floor retail.

Phase I encompasses the 305-unit Rushmark apartment building and 82 townhomes from EYA, with townhomes targeted to begin delivering in the third quarter of 2027. A second multifamily building with 266 units is targeted for 2029 as part of future phases, along with additional office and retail components.

FCP's Strategic Rationale

"FCP is excited to work alongside Rushmark, a highly respected developer and property owner in the DC region," said Billy Herbert, a Senior Vice President within FCP's multifamily development team. "This Falls Church transit-oriented community reflects our investment strategy, with a well-positioned, quality product developed under the direction of a highly successful development team and best-in-class general contractor in HITT."

FCP noted that the investment reflects its continued focus on Washington, D.C.-area multifamily assets and its ability to provide flexible capital solutions to developers in a challenging financing environment. The West Falls Church deal is the second preferred equity investment FCP has announced in 60 days, following a prior commitment at Aventon Wesley Chapel in Florida.

FCP, a subsidiary of Federated Hermes, Inc., has invested in or financed more than $14.8 billion in gross asset value since its founding in 1999. The firm invests in both commercial and residential assets through equity and structured investment vehicles, deploying capital from commingled discretionary funds and separate accounts across major U.S. real estate markets.

Sources

FCP — FCP Provides $22 Million Preferred Equity for 305-Unit Multifamily Development in Falls Church, VA (Aug. 31, 2026)