WRS Inc. has kicked off construction on the Lakeforest Redevelopment, marking the official groundbreaking for a mixed-use project planned on the former Lakeforest Mall property. The undertaking will reimagine the 102-acre site, replacing roughly 1.1 million square feet of aging retail space and parking fields with a new, phased development program.
The overall redevelopment is budgeted at approximately $1.2 billion and is planned to deliver 1,600 residential units. National homebuilder NVR is slated to construct about 600 of those units across a range of housing types. Another 600 rental apartment units will be developed by a partner that has yet to be announced, in collaboration with WRS Inc. In addition, Potomac Housing Development will deliver 250 workforce housing rental apartment units as part of the residential mix.
On the commercial side, plans call for more than 470,000 square feet of new retail and commercial space. Early retail commitments include major national and regional brands, with The Home Depot, Sprouts Farmers Market, and Landmark Theatres identified as initial tenants. These users are expected to help establish an anchor tenant mix as the broader site buildout advances through multiple phases.
The Lakeforest Redevelopment is projected to have a significant fiscal and economic impact on the City of Gaithersburg. At full buildout, the project is expected to generate approximately $2.7 million in annual recurring revenue for the city. In addition, total annual economic output associated with the redeveloped site is estimated at $1.7 billion once the project is fully realized.
The transformation of the former mall site into a mixed-use, residential- and retail-focused destination reflects a shift away from the legacy enclosed mall format toward a more diversified land use pattern. With the groundbreaking now complete, site work and vertical construction will progress under a multi-phase schedule designed to convert the underutilized property into a new residential and commercial hub for Gaithersburg.
