Construction begins on 268-unit affordable apartment building in North Bethesda
NoBE II to offer units for tenants earning 30% to 70% of area median income
By
Elia GriffinMarch 30, 2026 5:30 p.m. | Updated: March 30, 2026 5:31 p.m.
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Construction is underway on a 268-unit housing development in North Bethesda that will offer units that are affordable for households earning 30% to 70% of the county’s area median income.
Dubbed NoBE II, the development at the intersection of Rockville Pike and Nicholson Lane is being developed by SCG Development of Tysons, Virginia. SCG President Steve Wilson told Bethesda Today at Friday’s groundbreaking for the project that he anticipates the seven-story apartment building will be complete by summer 2028.
“These kinds of developments create opportunity,” Wilson said, noting the location’s proximity to the Pike & Rose mixed-use development and the North Bethesda Metro station.
The $130 million project is expected to bring a mix of studio apartments and those with up to four bedrooms to households earning up to 30% of the area median income. According to the Montgomery County Department of Housing and Community Affairs, the area median income (AMI) for a family of four in Montgomery County is $163,900.
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Prospective tenants can expect to be able to join a waitlist for the new building around the mid-point of construction, according to Wilson.
The county provided SCG with a $38 million loan to help finance the project, underscoring its commitment to producing and preserving local affordable housing, according to officials. The loan is the largest permanent financing agreement to date in the county for such projects, officials said Friday.
So far in fiscal year 2026, which began July 1, the county has invested more than $71.5 million to produce or preserve 1,233 affordable housing units, Scott Bruton, director of the Department of Housing and Community Affairs, said in a county press release about the NoBE II groundbreaking. There are more than 4,500 affordable units in the pipeline as well, according to Bruton.
In addition to county financing, the project received federal Low Income Housing Tax Credits administered by the Maryland State Department of Housing and Community Development (DHCD) and tax-exempt bonds from the department, the release said. Also, the department issued the project more than $187,000 from the Maryland Energy Efficiency Housing Affordability funds.
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During Friday’s groundbreaking ceremony held at the Porcelanosa tile and bath store next to the construction site, county and state officials praised the project’s expected affordable offerings and the public-private partnership that supported financing of the development.
Those attending the groundbreaking included Montgomery County Executive Marc Elrich, County Councilmembers Kate Stewart (D-Dist. 4) and Vice President Will Jawando (D-At large), Bruton and Brien O’Toole, the chief of housing production at the Maryland Department of Housing and Community Development.
Elrich said Friday that it was “exciting” to see construction begin on the project that eventually will provide housing to working-class county residents. Rent for some apartments in North Bethesda can cost as much as $8,000 to $12,000 per month, he said, but NoBE II is expected to offer more affordable options in a highly sought-after area with many transit and cultural amenities.
“This is what we should be doing,” Elrich said, gesturing to renderings of the NoBE II development during the groundbreaking ceremony. “This is where our money belongs.”
Construction is underway at the NoBE II site at the intersection of Rockville Pike and Nicholson Lane. Photo credit: Elia Griffin 
The NoBE II development will tie into the North Bethesda Market development home luxury residences and Whole Foods. Photo credit: Elia Griffin
NoBE II ties into the greater North Bethesda Market II mixed-use development along Rockville Pike. The affordable housing development is north of the North Bethesda Market development, which features luxury apartments and a Whole Foods store at 11351 Woodglen Drive.
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The project is also a component of the county’s ongoing efforts to strengthen its image as a life sciences hub and a key area for growth in the county. About a half mile away from NoBE II is the site of an upcoming transit-oriented life sciences center anchored by the University of Maryland’s Institute for Health Computing at the North Bethesda Metro Station.
Also, nearby is The Chimes at North Bethesda, a 163-unit affordable housing project nearing completion. The county contributed nearly $19.5 million to the project that’s being built by Montgomery Housing Partnership, a non-profit affordable housing developer. Construction began in late 2024.
County housing officials say NoBE II will “deliver long-term affordability” with income-restricted units available for at least 40 years. In addition, the project will include 41 moderately priced dwelling units that remain affordable for up to 99 years.
Stewart, who represents the North Bethesda area, said NoBE II also is expected to bring “stability” for renters – an issue with which she is personally familiar.
“As someone who … grew up in Brooklyn, New York, my family had to move every two years and it was hard. We were renters. My mom was a single mom, and we rented and moved every few years because of affordability issues,” Stewart said. “I know the more we invest here with great partners, the more we are able to provide stability for our families.”
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Originally published at Bethesdamagazine