Lakeforest Mall demolition ushers in start of $1.2B redevelopment project
Gaithersburg, county leaders, developers launch long-planned transformation
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Jacqueline KalilApril 13, 2026 2:54 p.m.
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Contribute TodaySurrounded by piles of gray rubble, Gaithersburg leaders, developers and elected officials gathered Monday to mark the beginning of the demolition of Lakeforest Mall, signaling the start of a long-anticipated transformation of the aging retail site into a mixed-use community with retail shops, residential units and access to transit.
“This is a significant step to moving us toward the finish line,” Gaithersburg Mayor Jud Ashman said during the ceremony attended by local officials and the project’s developers at the 102-acre mall sire at 701 Russell Ave.
Ashman called the moment a milestone years in the making. “On behalf of our whole community, I want to say hallelujah — let the redevelopment begin,” he said.
Opened in 1978, the mall once served as a central shopping and social hub for Montgomery County, featuring major department stores, an ice rink and later a movie theater and food court. For many residents, it was a place of first jobs, first dates and holiday shopping traditions.
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But as retail trends shifted and foot traffic declined, city officials and property owners began planning for its future after the mall closed on March 31, 2023. According to Ashman, the redevelopment plan drew some of the highest levels of public input the city has seen.
The approved vision calls for a $1.2 billion large-scale mixed-use development that will include housing, retail, entertainment and a new transit center. Plans outline roughly 1,600 residential units along with commercial and employment space designed to create a walkable, community-focused environment.
“This was a cultural, entertainment and shopping hub for almost 50 years,” Ashman said. “Now we’re imagining what comes next.”
Kevin Rogers, principal of property owner WRS Inc. Real Estate Investments in South Carolina, described the project as the culmination of a six- to seven-year effort to assemble land and finalize plans for redevelopment.
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Montgomery County Councilmember Sidney Katz (D-Dist. 3), a former mayor of Gaithersburg, reflected on the mall’s history and the evolution of retail.
“Success is when you change things for the better,” Katz said. “Retail is not the same. We have to accept that and move on and do something better — and that’s exactly what’s going to happen here.”
Potomac resident David Trone, a Democrat who is seeking this year to recapture his former 6th Congressional District, echoed that sentiment, pointing to broader shifts in consumer behavior and the decline of traditional malls nationwide.
“At one point, we had about 1,000 malls in America like this,” Trone said. “That number is going to drop significantly. The way people shop has changed, and redevelopment like this is how communities adapt.”
The project will also bring new housing options to the area. Patrick Donahue, vice president of regional land operations at NVR Inc. in Reston, Virginia, said the company plans to build approximately 600 homes on the site, including townhomes and other multi-level housing types aimed at a range of buyers.
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“This project represents more than just housing,” Donahue said. “It’s a true mixed-use development — a modern, walkable neighborhood that recreates that sense of community the mall once had.”
The redevelopment plan includes 600 rental apartments built with WRS, Inc., 250 workforce housing units by Potomac Housing Development, and more than 470,000 square feet of retail and dining space anchored by tenants such as The Home Depot, Sprouts Farmers Market and Landmark Theatres.
Councilmember Laurie-Ann Sayles (D-At-large) presented a citation recognizing the project’s significance, calling it a “historic revitalization” that will bring new economic opportunities, housing and gathering spaces to the area.
Construction is expected to take several years to complete, with developers and city officials emphasizing that Monday’s demolition kickoff is just the first step in a long-term transformation.
As heavy machinery continued to demolish what remains of Lakeforest Mall, leaders said the project represents an end and a beginning — the closing chapter of a once-iconic mall and the start of a new vision for Gaithersburg’s future.
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Originally published at Bethesdamagazine