Editor’s note: This story, originally published at 8:51 a.m. on Feb. 28, 2025, was updated at 4:04 p.m. on Feb. 28, 2025, to correct Greg Ruff’s title to director of land entitlements of Tri Pointe Homes and to more accurately reflect his comment on interest rates.
The Montgomery County Planning Board unanimously approved Thursday an amended sketch plan for a North Bethesda housing development that slashes the number of units and removes space for proposed commercial uses to instead build townhomes.
During its meeting at the board’s Wheaton headquarters, board members reviewed the amended plan submitted by California-based developer Tri Pointe Homes and Wilgus Montrose Associates.
The amended plan encompasses 4 acres of a 16.6-acre tract of land between Josiah Henson Parkway and Towne Road. The developers previously received Planning Board approval for a high-rise multi-family development with a total of 604 housing units in mid-rise and high-rise mixed-use buildings, according to planning documents.
The property is near the Pike & Rose mixed-use neighborhood and the Montrose Crossing shopping center at 12055 Rockville Pike.
The approved changes will eliminate 466 units and replace them with 138 townhouses. Of the 138 townhomes, 15%, or 20 units will be moderately priced dwelling units, according to the planning documents.
The developers proposed the changes because building the high-rises has become “infeasible” due to “market conditions in the greater White Flint area, overall financing challenges and the large backlog of approved but unbuilt multifamily projects in the area,” according to a statement of justification letter from the developers’ attorney, Robert R. Harris of Lerch Early and Brewer law firm.
Greg Ruff, director of land entitlements at Tri Pointe Homes, told Bethesda Today after the amended plan was approved that market conditions such as interest rates are a factor that impacts development projects.
“What’s going to happen with interest rates is always a big driver of the sales and just consumer confidence — how confident do people feel about their jobs and making a big purchase?” Ruff said.
Recognizing the county’s “housing crisis remains extremely severe,” developers were looking to provide housing that was more affordable than single-family detached homes, the letter said.
“In order to afford home ownership, many families are turning to two-over-two units, back-to-back townhomes, flats and other more affordable housing types,” the letter said. “Units such as these are particularly rare within Metro Station areas including White Flint, while the desire to live in areas like White Flint is quite high.”
In light of the request to change from rental units to those available for sale, board Vice Chair Mitra Pedoeem asked planners what the “top priority” is for the county in housing production.
“I’m just wondering because usually for the younger generation, they start with rentals but then eventually – I don’t know maybe the trend is changing because they’re so mobile – they want to have ownership,” Pedoeem said.
While surprised to see the request for the 466-unit reduction, she said she could appreciate that the new plans allow for ownership options. “It’s just a little bit puzzling,” Pedoeem said.
Ruff said Tri Pointe Homes hopes to begin land development at the site in the fall of 2026 and finish construction by summer 2029. The developers plan to submit site plans in April.
In addition to the change in housing types, the plan amendment also calls for increasing the size of a proposed public park to be known as Eastern Urban Park as a result of the new building layout, planning documents state. The amended plan increases the size of the park from .44 acres to .6 acres.
Developers also plan to eliminate proposed structured parking garages and loading areas associated with the initially proposed apartment buildings, planning documents state. Instead, each townhouse unit will have one off-street parking space.
Multi-phase development
The amended plan is part of a larger housing development project, Northpark at Montrose, that proposed a total of 745 dwelling units, with up to 107 townhomes, 638 multi-family units and 15,000 square feet of ground floor retail. The multi-phase plan is underway with the ongoing construction of 107 townhouse units and 34 stacked two-over-two multi-family units.
The first phase of the project will not be impacted by the proposed plan amendment, according to planning documents.
According to Ruff, about 15 families have moved into completed townhomes and about 20% of the originally planned townhomes have been sold. He also noted a large park in the middle of the project is expected to be completed in the next few months.
“It’ll be open for use by the summertime. It’s open for the general public to use so we’re excited about that,” Ruff said, noting the park will have an open lawn and play area for children.
