First Office-to-Residential Affordable Housing Property Deal Closes in Fairfax County

Fairfax County Redevelopment and Housing Authority (FCRHA) and Conifer Realty (“Conifer”) announce the financial closing of Telestar Court. Located in the Mosaic area of the Providence District, Telestar Court is an adaptive reuse development that converts an existing four-story vacant office building into 80 affordable homes. Following renovations, one and two-bedroom units will be available to households at approximately 30-80% of the Average Median Income (AMI).

“Telestar represents FCRHA’s initial foray into converting office space into affordable housing. 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. 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,” said Lenore Stanton, Chair, FCRHA.

Financing of the Telestar Court development project received Fairfax County Board of Supervisors approval in July of 2023. Since that time, FCRHA and Conifer have been conducting necessary due diligence to evaluate construction potential of the property. Construction will commence in May 2025.

“Merrifield is a vibrant community, and I’m proud that we are delivering new affordable housing near transit, jobs, and essential services. 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,” said Providence District Supervisor and Board of Supervisors Housing Committee Chair Dalia Palchik.

The FCRHA is providing $8 million in American Rescue Plan Act (ARPA) funds towards acquisition of the Telestar site. Additional financial sources include Housing Opportunity Credit, 4% Low Income Housing Tax Credits, Virginia Department of Housing and Community Development Affordable and Special Needs Housing subordinate loans, and Virginia Housing tax-exempt bonds and financing. The developer, Conifer Realty, has formed a joint venture with Joseph Browne Development Associates for the development of Telestar Court, and will both be the co-managing members in the project entity, Merrifield Housing, LLC. The Telestar site was formerly owned by Inova Health Care Services. Upon closing, the FCRHA will acquire the underlying title of the Telestar site and will immediately enter into a ground lease for a term of 99 years with the project entity, Merrifield Housing, LLC.

“Telestar Court represents an exciting milestone as Conifer’s first development in Virginia,” said Paul Marfione, Vice President of Development for Conifer Realty. “We are thrilled to bring our 50 plus years of expertise in affordable housing to Fairfax County and provide modern, sustainable living options for residents. This development exemplifies our dedication to creating vibrant communities that offer residents access to both economic opportunity and quality living.”