The City of Gaithersburg has shared another update on the massive Lakeforest redevelopment, announcing that another phase of the project has received approval while additional site plans continue moving through the review process.
According to the city, the Planning Commission approved Site Plan Application SP-10031-2025 (Phase 1) on July 15. Final Site Plan Application SP-10084-2025 (Phase 2) remains under review, and a public hearing has not yet been scheduled. Residents wishing to comment on the applications can submit feedback by mail to 31 S. Summit Ave., Gaithersburg, MD 20877, or by email to [email protected].
Phase 1 includes storm drain infrastructure improvements and the reshaping of one of the site’s stormwater management ponds. Phase 2 will include the construction of Street One, Street Two, and Lakeforest Boulevard, helping establish the street network that will serve the future mixed-use community.
The applicant has also submitted Final Site Plan Application SP-10278-2026, requesting confirmation that proposed 4-story stacked gap units, 4-story back-to-back gap units, and 3-story duplex gap units meet the definition of gap housing under the Lakeforest Master Plan.
The update comes just weeks after the former Lakeforest Mall was fully demolished in June, marking the end of an era for the longtime Gaithersburg landmark and clearing the way for the next phase of the $1.2 billion redevelopment.
Led by WRS Inc., the project will transform the former mall property into a walkable mixed-use neighborhood featuring housing, retail, restaurants, entertainment, office space, parks, and expanded transit connections.
Current plans call for approximately 1,600 residential units, including rental apartments, workforce housing, townhomes, stacked duplexes, and condominiums. National homebuilder NVR is expected to build approximately 600 for-sale homes, while additional development partners will construct the rental communities.
Retail plans continue to take shape as well, with a 140,000 SF Home Depot, a 23,000 SF Sprouts Farmers Market, and a 15,000 SF Landmark Theatre already confirmed. The Sprouts and Landmark locations will each be only the second in Montgomery County. Initial retail construction will also unlock approximately 850 rental apartments planned above portions of the first phase.
Overall, the redevelopment is expected to include more than 470,000 SF of commercial space, with restaurants, boutique retail, entertainment venues, fitness facilities, medical offices, salons, and other neighborhood-serving businesses. Plans also include a central gathering space designed to host farmers markets, outdoor movies, food truck festivals, and other community events.
The redevelopment will also include a new and relocated Lakeforest Transit Center, providing connections to Ride On bus routes and the future MD 355 Flash Bus Rapid Transit system.
A major focus of the project is creating a pedestrian-friendly environment. Plans feature a grid of walkable streets, more than 35 acres of green space, public plazas, expanded bicycle and pedestrian connections, and a boardwalk surrounding revitalized ponds.
When fully built, city officials estimate the redevelopment will generate approximately $2.7 million in annual recurring revenue for the City of Gaithersburg while producing an estimated $1.7 billion in annual economic output. Residents wishing to submit comments on the pending applications can mail them to 31 S. Summit Ave., Gaithersburg, MD 20877, or email [email protected].
