Fairfax, Virginia, August 15, 2025
News Summary
Developers secured a $60 million construction loan to build The Botanist, a 260‑unit apartment building at 10350 Eaton Place on a roughly 3‑acre former surface parking lot in Fairfax. The project is being developed by Middleburg Communities and Capital City Real Estate with about $40 million of committed equity and a recent land purchase of $10.4 million. Construction will begin immediately with first move‑ins expected in the third quarter. Leaders cited limited new apartment supply in Northern Virginia and steady rent growth as key reasons to move forward despite regional market headwinds.
Developers secure $60 million loan to build 260‑unit apartment in Fairfax
A new ground‑up apartment project in Northern Virginia cleared a major financing hurdle and is set to start construction immediately. Developers The Botanist will rise at 10350 Eaton Place in Fairfax, replacing a 3‑acre surface parking lot next to a cluster of 1980s office buildings.
Top facts up front
– The project will deliver a 260‑unit apartment building called The Botanist.
– A $60 million construction loan was provided by CIBC Bank USA, a Chicago‑based subsidiary of a Canadian bank.
– The developers, Middleburg Communities and Capital City Real Estate, also have $40 million of equity committed, with Middleburg and a 90% limited partner supplying that capital.
– The team closed on the site for $10.4 million last week and plans to start work immediately with first units due in third quarter 2027.
Where and what will be built
The project site is a surface parking lot that sits directly adjacent to a small office park. The plan calls for a multifamily building with 260 apartments on a roughly 3‑acre parcel at 10350 Eaton Place. Construction financing now in place makes the project one of the rare new apartment ground‑up starts in the Northern Virginia market.
Who is building and how it will be financed
Development partners are Middleburg Communities and Capital City Real Estate. The construction loan is coming from CIBC Bank USA. Developers are contributing a total of $40 million in equity, with Middleburg and a 90% limited partner covering that commitment; the identity of the larger limited partner was not disclosed. The land closed last week for $10.4 million, and the team plans to break ground immediately.
Timeline and project history
The project has been in planning for about four years. Entitling and approvals began nearly four years ago under Capital City’s lead, and Middleburg joined as a general partner last year. With financing now secured, the team expects to complete the first move‑ins in the third quarter of 2027.
Why the developers moved forward
Developers cited a shortage of new apartment supply in Northern Virginia compared with other nearby markets as a primary attraction. The area has been an active acquisition target, but new construction pipelines have lagged. Local housing progress toward regional targets has been slow; one recent tally put Fairfax County well short of a 2030 development goal.
Market context and risks
The timing comes amid ongoing questions about federal employment trends. The federal workforce contracted in parts of the region in recent months, and that raised concerns among some investors earlier in the year. Lenders and partners involved in this project indicated they saw strong portfolio performance in the Northern Virginia region and believed rent growth remained healthy, helped by limited supply. Developers also noted that renters affected by federal job cuts generally received buyouts that allowed them to keep paying rent while finding new roles in the private sector.
Rent and vacancy snapshot
Regional rent data from earlier in the year showed Washington‑area prices modestly higher year‑over‑year even as national rents slipped. Median two‑bedroom rents in the broader metro hovered above $2,200, with pockets such as Arlington, Tysons Corner and Merrifield among the priciest submarkets. Northern Virginia corridors mostly posted year‑over‑year rent gains, and the limited pace of new apartment starts in the immediate market helped sustain that growth.
Other local developments to watch
Local communities have also seen heightened attention to enforcement actions at apartment complexes, including a recent early‑morning enforcement visit at a Fairfax County multifamily community. Residents reported aggressive knocking and tactical gear presence; no confirmed detentions were reported by nearby tenants. Separately, the region continues to absorb a large wave of national apartment completions elsewhere, which has pushed vacancies and concessions in some markets while leaving constrained markets like this one more resilient.
What’s next
With construction financing closed and equity committed, the development team plans to move into construction. The first units are expected to be delivered in third quarter 2027, barring unforeseen delays. The project will provide new rental options in an area that has seen limited recent ground‑up apartment development.
Frequently Asked Questions
What is the project and where will it be located?
The project is a 260‑unit apartment building called The Botanist, planned for a 3‑acre parking lot at 10350 Eaton Place in Fairfax, Virginia.
Who is developing the project?
The development team includes Middleburg Communities and Capital City Real Estate. Middleburg joined as a general partner last year.
How is the project being financed?
Construction financing includes a $60 million loan from CIBC Bank USA. Developers and a 90% limited partner have committed about $40 million in equity. The land purchase closed at $10.4 million.
When will construction start and when are units expected?
Construction is expected to start immediately after financing closed. The first units are planned for delivery in the third quarter of 2027.
Why build apartments in this market now?
Developers pointed to limited new apartment supply in Northern Virginia and steady local rent growth as key reasons to move forward despite regional job‑market concerns.
Are there risks related to federal employment trends?
Federal job cuts in parts of the region have caused investor caution, but the project backers and lender assessed local performance as strong and expect private‑sector hiring and limited supply to help offset short‑term federal cuts.
Key project features
| Feature | Detail |
|---|---|
| Project name | The Botanist |
| Location | 10350 Eaton Place, Fairfax, VA |
| Site size | About 3 acres (surface parking lot) |
| Units | 260 units |
| Construction financing | $60 million loan from CIBC Bank USA |
| Equity | $40 million from Middleburg and a 90% limited partner |
| Land purchase | $10.4 million |
| Start of construction | Planned immediately after financing close |
| First units expected | 3rd quarter 2027 |
Deeper Dive: News & Info About This Topic
Additional Resources
- CoStar: Joint venture secures land financing for multifamily project in Northern Virginia office park
- Wikipedia: The Botanist 10350 Eaton Place Fairfax
- NBC Washington: ICE operation at Virginia apartments scares residents
- Google Search: ICE operation Virginia apartments
- Northern Virginia Magazine: Where does Northern Virginia’s rental market stand?
- Google Scholar: Northern Virginia rental market 2025
- FFXNow: Led by Tysons, Fairfax apartment rents continue rise
- Encyclopedia Britannica: Fairfax apartment rents 2025 Tysons
- Holland & Knight: Understanding the proposed updates to DC’s residential apartment zone
- Google News: DC residential apartment zone updates 2025
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