A project to convert a former Inova office building in Merrifield into affordable housing is set to begin construction this May.
The Fairfax County Redevelopment and Housing Authority (FCRHA) and developer Conifer Realty announced late last week that they’ve closed on financing for the repurposing of the vacant, four-story office building at 2990 Telestar Court, which will be turned into 80 apartments.
The development represents Conifer’s first venture in Virginia and the county housing authority’s first effort to convert office space into affordable housing, according to press releases.
“We are thrilled to bring our expertise in affordable housing to Fairfax County and provide modern, sustainable living options for residents,” Conifer Realty Vice President for Development Paul Marfione said. “This development exemplifies our dedication to creating vibrant communities that offer residents access to both economic opportunity and quality living.”
While an exact construction start date hasn’t been determined, Conifer anticipates breaking ground “in the next few weeks” with a formal, celebratory event planned for June or July, communications director Dave Lanzillo told FFXnow.
If it stays on track, the renovation is expected to be complete by the end of 2026, delivering one and two-bedroom rental units that will be available to households earning 30 to 80% of the area’s median income (AMI).
As of June 2024, Fairfax County’s AMI was $108,300 for one person, per the Department of Housing and Community Development. Under the county’s workforce dwelling unit (WDU) program, rents for a one-bedroom apartment restricted to people making up to 80% of the AMI, or $86,650 a year, would be capped at $2,192.
The county recently revised its WDU program, which requires developers to provide income-restricted units in exchange for additional density, by shifting the targeted income range from 80 to 120% AMI down to 70% to 100%, among other changes.
Office-to-residential conversions have emerged in recent years as a tantalizing option for addressing two challenges facing real estate both locally and nationally: elevated office vacancy rates and a constrained supply of housing — one factor driving up costs for both homeowners and renters.
However, not all offices are suitable for adapting into housing, with many developers opting instead to tear down the existing buildings and start from scratch. Fairfax County has approved a few other repurposings, including projects in Tysons, but the Telestar development is the first to both reach construction and offer exclusively affordable units.
“There are many challenges involved in an office-to-residential conversion, including design, code, financing, and ensuring affordability will be preserved for years to come,” FCRHA Chair Lenore Stanton said in a press release. “Through due diligence, stress testing, and very intensive analysis on the part of our staff and Conifer, we have been able to outline a successful solution that will achieve our goals.”
Proposed by developer Madison Highland, the workforce housing project was approved by the Fairfax County Board of Supervisors in June 2023 in conjunction with a plan to convert a second office building at 8110 Gatehouse Road into live/work units.
The Telestar and Gatehouse buildings had served as Inova’s administrative headquarters until the nonprofit health system relocated those operations to its Center for Personalized Health (8100 Innovation Park Drive) in fall 2022.
According to Madison Highland’s website, its live/work conversion on Gatehouse Road is expected to start construction this spring and take about 18 months to complete. The six-story building will feature 215 lofts that can be used as housing, workspaces or both, along with an atrium, pickleball courts, a dog park, resident vegetable gardens and other amenities.
Madison Highland didn’t return a request for comment by press time.
According to Conifer Realty, the workforce housing project will cost $51 million, with funds coming from the federal American Rescue Plan Act and other public financing, tax credit equity and private sources.
To ensure the site’s affordability status for the foreseeable future, FCRHA has acquired the underlying land and entered into a 99-year lease with Merrifield Housing, a new joint entity managed by Conifer Realty and its partner Joseph Browne Development Associates.
The building will include units in the county’s Project-Based Vouchers (PBV) program as well as its permanent supportive housing initiative, which provides housing for formerly homeless individuals, “ensuring that the community will serve a diverse range of residents in need,” Conifer said.
“Merrifield is a vibrant community, and I’m proud that we are delivering new affordable housing near transit, jobs, and essential services,” said Providence District Supervisor Dalia Palchik, who chairs the board’s housing committee. “Housing is a public good, and ensuring that people of all income levels can live with dignity and access opportunity is central to building a better Fairfax County and a place to call home.”
