Baltimore-based MCB Real Estate has cleared a major public-financing hurdle for VIVA White Oak, its planned $2.7 billion mixed-use development in Montgomery County, Maryland, outside Washington, D.C.
Montgomery County Executive Marc Elrich signed legislation on August 28 authorizing up to $420 million in Tax Increment Financing bonds for public infrastructure at the 280-acre site.
The action authorizes Montgomery County’s first use of TIF financing and allows the county to move toward executing its financing agreement with MCB.
The Montgomery County Council unanimously approved the legislation in July before it was signed by Elrich on August 28.
The bonds are expected to support soil remediation, connector roads, water and sewer infrastructure, utility connections and other public improvements needed to prepare the property for development. The authorization positions the county and MCB to move toward an initial bond issuance later this year.
“This financing is an affirmation of the power of public private partnership and establishes the foundation for unprecedented economic growth in East County,” said P. David Bramble, co-founder and managing partner of MCB Real Estate.
MCB is targeting a groundbreaking this fall, advancing a project that has been in various stages of planning for years.
A 12 Million-Square-Foot Mixed-Use District
Located in White Oak near Silver Spring, VIVA White Oak is adjacent to the U.S. Food and Drug Administration’s White Oak campus and Adventist HealthCare White Oak Medical Center.
The project is approved for roughly 12 million square feet of mixed-use development, including residential, retail, laboratory, office, medical-office and public-space components. At full buildout, the development is expected to include more than 4,400 residences and more than 3 million square feet of laboratory, office, medical-office and retail space.
The first phase is expected to include townhomes, a 400-unit apartment building, a 600-unit apartment building, a town center and retail. Costco has signed on as a major retail anchor, with plans for a 162,000-square-foot store.
MCB has also selected Ryan Homes and NVHomes, both part of NVR Inc., to build the project’s for-sale housing component.
A Life Sciences Hub
VIVA White Oak also includes a planned Innovation Campus intended for life sciences and biotechnology users.
The development’s location next to the FDA’s White Oak campus places it within Maryland’s broader life sciences ecosystem, while the larger project combines housing and retail with laboratory, medical-office and other commercial space.
How the TIF Works
Under the TIF structure, Montgomery County can issue bonds for qualifying public infrastructure and use a portion of the incremental property-tax revenue generated within the development district to repay those bonds over time.
For VIVA White Oak, the financing is designed to cover substantial upfront infrastructure costs needed before vertical development can proceed.
The county has said repayment will come from new tax revenue generated by the development rather than general-fund resources used for other county services.
Construction and Development Timeline
At full buildout, VIVA White Oak is projected to generate approximately 19,000 construction jobs and 9,000 permanent jobs.
County officials estimate the development will generate approximately $21 million in annual county revenue beginning in 2033, with that amount expected to increase in subsequent years.
Phase One is expected to be completed by 2033, with full buildout anticipated by 2044.
The authorization gives MCB a mechanism to address the site’s significant front-end infrastructure costs and begin transforming one of Eastern Montgomery County’s largest planned development sites into a long-term residential, retail and life sciences district.
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