Carr Properties is moving forward with a major office-to-residential conversion in Arlington’s Ballston neighborhood, planning to transform a 10-story, 186,000-square-foot office building at 4040 N. Fairfax Drive into a 392-unit multifamily community, with redevelopment slated to begin in summer 2028.
From offices to housing in a transit-rich location
The property sits steps from the Ballston-MU Metro station, in one of Northern Virginia’s busiest mixed-use corridors. The asset currently includes roughly 6,000 square feet of street-level retail and a two-level parking garage. The building, originally completed in 1966, underwent a full renovation in 2012.
Carr acquired the site from Ascentris for approximately $12.3 million, according to public records cited by the Washington Business Journal. That purchase price is about one-third of the property’s most recent assessed value of roughly $35.3 million.
Transaction background and previous ownership
The Ballston building has changed hands several times in recent years. Public records and Yardi Matrix data show the property was purchased by Penzance in December 2014 for about $89 million. In June 2019, Penzance obtained a variable loan of $47.9 million originated by Affinius Capital.
Those earlier transactions reflect the shifting fortunes of downtown and suburban office assets in the years before the current conversion trend took hold.
Carr’s expanding residential pipeline in the D.C. metro
The Ballston conversion is one of multiple office-to-residential or urban infill projects Carr has underway in the Washington region. The company is expected to open Margot, a 237-unit building at 425 Montgomery St. in Old Town Alexandria later this year. Another project at 3033 Wilson Blvd. in Arlington’s Clarendon neighborhood — a 315-unit development with about 294,000 square feet of residential space and 6,000 square feet of retail — is slated for delivery in early 2028.
- 4040 N. Fairfax Drive: planned conversion to 392 units; redevelopment begins summer 2028.
- 425 Montgomery St. (Margot): 237 units, opening later this year.
- 3033 Wilson Blvd.: 315 units, expected early 2028 delivery.
What the redevelopment means locally
Redeveloping a sizable office building into nearly 400 apartments will add a significant number of housing units to a dense, transit-accessible neighborhood. The site’s proximity to Ballston-MU Metro connects future residents directly to Metrorail service and regional bus routes, underscoring the project’s alignment with transit-oriented development principles.
The conversion also repurposes existing building stock rather than clearing land for new construction. That approach can shorten development timelines for occupancy compared with greenfield projects and preserve street-level retail and parking arrangements that serve the neighborhood.
Project specifics at a glance
| Item | Detail |
|---|---|
| Address | 4040 N. Fairfax Drive, Ballston, Arlington, Va. |
| Existing building size | 186,000 square feet |
| Planned units | 392 |
| Retail | Approximately 6,000 square feet |
| Parking | Two-level parking garage |
| Acquisition price | About $12.3 million |
| Assessed value (most recent) | Roughly $35.3 million |
| Redevelopment start | Planned summer 2028 |
Regional conversion trend
Carr’s activity in Ballston, Clarendon and Old Town reflects a broader pattern of converting underused office buildings into housing in the Washington metropolitan area. Developers and local officials have increasingly weighed such projects as office vacancy patterns and market demand shift. For residents, conversions can bring new rental options in neighborhoods with established transit and retail infrastructure.
For now, the Ballston property remains a multi-tenant office asset, but the planned timeline sets a clear marker for when construction will begin and when the neighborhood may see a substantial influx of new renters and associated economic activity.
As the project progresses toward the projected summer 2028 start, county permitting filings, community meetings and design submissions will offer further detail on unit mix, affordability provisions if any, construction impacts and the exact timeline for occupancy.
Reporting for this story relied on public records and regional real estate data cited by the Washington Business Journal and Yardi Matrix.
