Capital Properties exits Westbard redevelopment picture in $100 million sale

The Residences at Capital Crescent Trail

Capital Properties won't be a part of Montgomery County's plan to urbanize the Westbard area of Bethesda. The real estate firm has sold its Westbard Avenue property to Air Communities, leaving EYA as the only original developer to survive the bruising, seven-year battle with residents over the future of their community. Air Communities acquires the Residences at Capital Crescent Trail and two development sites that are zoned for up to 498 additional residential units under the 2016 Westbard sector plan. The firm says it won't develop those sites - currently parking lots behind and next to the building - itself, but seek out a third-party development partner.

The Capital Properties parcels have always had the highest density potential, as the firm had promised County officials it would make 25% of the units affordable. CP originally sought to construct 30-story towers on the two Westbard parcels, with up to 1000 units. Equity One also sought more units on its Westbard properties, but gave way to successor Regency Centers as a legal battle with residents played out in court.

One of the two redevelopment sites on the property
is the parking lot at bottom right in this photo
taken from a unit in the 
Residences at Capital Crescent Trail

After years of court hearings and protests, redevelopment at Westbard is going to be significantly lower-density than developers sought in 2014. Entire buildings were scrapped as Regency Centers sought a less-contentious plan that didn't require special exceptions - but also doesn't have to provide as many affordable units as a result.

Capital Properties didn't walk away a loser, however. It purchased the property it just sold to Air Communities for $29,000,000 in 2005. Sale price of that property to Air Communities earlier this month? $100,000,000, according to Maryland real estate records. Capital Properties once held all the cards at Westbard for seven years, but sold the rest of its "Westwood Complex" parcels at Westbard to Equity One in 2012.