Peterson Cos., a Fairfax real estate development company, has renewed its interest in building up to 500 multifamily units in several apartment buildings in the Rio Washingtonian shopping and entertainment center in Gaithersburg.
Meanwhile, Guardian Realty Investors won approval for a housing project with more than 400 units called Gateway Lakeforest, which calls for the redevelopment of two office buildings into one eight-story apartment building at the intersection of North Frederick Avenue and Lakeforest Boulevard.
In May, Peterson Cos. filed a schematic development plan for the Rio Residential project with the city of Gaithersburg. The plans call for a total of 43,000 square feet of residential development across four buildings located throughout the Rio Washingtonian Center at 9841 Washingtonian Blvd. Peterson Cos. owns the Rio lakefront area as well as a 440,000-square-foot shopping, dining and entertainment development in downtown Silver Spring.
“Filing this plan is a strategic part of our long-term vision, designed to provide the flexibility needed to adapt and densify Rio as market conditions evolve,” Joanna Rothermel, vice president of marketing at Peterson Cos., said Monday in an email to Bethesda Today. “It supports a thoughtful mix of retail, restaurants, entertainment, and residential – aligning with the city’s vision and allowing us to plan for the future.”
According to Rothermel, the schematic development plan builds on a Peterson Cos. sketch plan approved by the city in 2018 and outlines a “long-term vision” for adding density to the Rio lakefront. A timeline for fulfilling the schematic development plan is unclear. Rothermel said no construction schedule has been set.
“The filing is intended to keep future options open and ensure the project can evolve thoughtfully over time in response to market needs,” she said.
Since the filing of the schematic development plan, dozens of Gaithersburg residents have shared their opposition to the project, citing concerns with the proposed removal of public green space around the lake and potential traffic congestion due to increased density.
“There are not enough roadways in and out of the area, making it very difficult to access already,” resident Tanya Boris-Cass wrote in a June email to city planners. “I was just there this past Friday night to dine and shop. It took us 20 minutes to make it from the parking lot next to the Target to the intersection with [Interstate] 270. Traffic was gridlocked.”
Resident Lei Yan wrote to planners that the project would “overcrowd and ruin” Rio’s lakefront.
“There is already a huge lack of third spaces and areas where local residents can walk and hang out. Adding a residential building will create a stifling environment,” Yan said.
In response to concerns, Rothermel said Peterson Cos. understands how important the lakefront amenities and green spaces are to the community.
“We … remain committed to preserving those experiences,” she said.
A public hearing regarding the schematic development plan has not been scheduled, according to the city of Gaithersburg’s website. However, residents can send comments about the project to city planners via email at planning@gaithersburgmd.gov or by mail to 31 South Summit Ave., Gaithersburg, MD 20877.
Another Gaithersburg housing project in the pipeline is Gateway Lakeforest, proposed by developers Guardian Realty Investors. The North Bethesda-based real estate investment company has proposed redeveloping two office buildings it owns at the intersection of North Frederick Avenue and Lakeforest Boulevard into one eight-story apartment building, planning documents state.
Project plans call for up to 410 housing units, with 62, or more than 15%, designated as moderately priced dwelling units, to be built on 6.5 acres at 481 N. Frederick Ave., according to planning documents. In addition, the proposed building would include more than 20,000 square feet of commercial space and feature an interior courtyard and swimming pool, planning documents state.
In its statement of justification for the project, Guardian Realty said the redevelopment will contribute to “the successful revitalization of the Frederick Avenue Corridor by redeveloping two underutilized properties with a modernly designed multifamily residential building.”
In early July, the City Council and Mayor Jud Ashman approved a zoning amendment for the Gateway Lakeforest project that rezones three parcels of land, each the site of a Guardian Realty-owned office building, to allow for the redevelopment project. Two of the buildings will be demolished and redeveloped, while the one at 702 Russell Ave. will remain as an office building, according to planning documents.
Casey Cirner, an attorney with the law firm Miles & Stockbridge that represents the developers, said Monday in an email that she and Guardian Realty would not comment on the project and did not respond to questions about the project timeline.
Guardian Realty is the owner and original developer of the three parcels, having acquired them from the Lakeforest Mall development in the late 1970s to construct the existing office buildings, according to planning documents. The decision to redevelop stems from the office buildings “nearing the end of their useful lives,” with the housing development plans presenting a new opportunity to “reinvest in” Gaithersburg, Guardian Realty said in planning document.
With the zoning amendment approved, Guardian Realty is now required to submit a revised schematic development plan for the project, planning documents state. The timeline for submitting that plan is unclear.
The proposed project is about one block away from the 100-acre Lakeforest Mall property, which served as an entertainment and employment hub for the Gaithersburg community and other Montgomery County residents for 45 years until closing in 2023. In September, Ashman and the council unanimously approved redevelopment plans calling for the construction of 1,600 housing units along with 1.2 million square feet of entertainment, recreation and commercial space.
Demolition of the property began this year and is expected to last up to 14 months.