As noted the last couple weeks, demolition is officially underway at the former Lakeforest Mall site, marking a major milestone in the long-anticipated redevelopment of the 102-acre property in Gaithersburg.
City officials, community leaders, and representatives from WRS Inc. gathered for a groundbreaking ceremony to kick off the project, which will transform the long-vacant mall site into a large-scale, mixed-use development designed as a walkable “mini-city.” The mall, which originally opened in 1978, closed in 2023 and has since been a focal point for redevelopment efforts.
The $1.2 billion project will be built in multiple phases and aims to replace more than 1 million square feet of aging retail space and surface parking with a mix of residential, commercial, and community-focused uses.
Plans call for approximately 1,600 residential units, including a mix of rental apartments and for-sale housing such as townhomes, stacked duplexes, and condominiums. National homebuilder NVR is expected to construct around 600 for-sale units, while additional partners will deliver rental housing, including workforce units.
Retail and dining will play a major role in the redevelopment, with more than 470,000 square feet of commercial space planned. Initial tenants announced include The Home Depot, Sprouts Farmers Market, and Landmark Theatres, with additional retailers and restaurants expected to be revealed in the future. The development will also feature an entertainment-focused area designed for community events such as farmers markets, outdoor movies, and food truck gatherings.
A new and relocated Lakeforest Transit Center is also part of the plan, which will support multiple Ride On bus routes and connect to the future MD 355 Flash Bus Rapid Transit system.
The project emphasizes a pedestrian-friendly design, with a grid of walkable streets, more than 35 acres of green space, and amenities such as a boardwalk around revitalized ponds, public plazas, and expanded bike and pedestrian connections.
Officials say the redevelopment is expected to generate approximately $2.7 million in annual recurring revenue for the City of Gaithersburg and contribute an estimated $1.7 billion in annual economic output at full buildout.
Construction on initial infrastructure, including demolition, roadways, and stormwater systems, is now underway. Vertical construction on the first residential and retail buildings is expected to follow.
City leaders noted that the project reflects years of planning, including the approval of a mixed-use rezoning and development plans between 2023 and 2024. The redevelopment is guided by the City’s 2021 Master Plan, which envisions the site as a vibrant hub for housing, jobs, and community activity.
More updates are expected as demolition continues and the project moves into its next phases.
