Hundreds of low-income seniors living in a 50-year-old property in Reston will soon have a new building to call home.

Enterprise Community Development and Fellowship Square Foundation celebrated the groundbreaking Thursday of the Lake Anne House redevelopment in Reston, an $86M project.

The team is constructing a new 240-unit building on the site of the 1970s-era Lake Anne House senior living community. The project allows the seniors to stay on the property until the new building delivers in summer 2022, and then the old building will be demolished to make way for townhouses.

The new building will consist of 56 studio units, 178 one-bedroom apartments and six two-bedroom apartments. It is set aside for senior residents making below 60% of area median income.

The project will include a wellness clinic, a fitness center, a social hall, a game room, an arts and crafts room, a sunroom and an outdoor terrace. The community will have on-site management and resident services staff.

The redevelopment deal was financed with a variety of funding sources. Virginia Housing provided $46.5M in tax-exempt bond financing. Capital One provided $21.5M in low-income housing tax credit equity. The Enterprise Community Loan Fund provided $7.2M in bridge financing, the Fairfax County Redevelopment and Housing Authority provided $3M in funding, and Virginia Community Capital provided $1M.

The groundbreaking comes five years after Fellowship Square Foundation put out a request for proposals for a development partner, leading to the selection of Enterprise. The team also includes Orr Partners, Grimm+Parker Architects, Bozzuto Construction and Charles P. Johnson & Associates.

"The new, modernized Fellowship Square residences will be more space efficient, energy efficient, and will provide enhanced amenities — while still assuring that rent is never more than 30% of a resident’s income," Fellowship Square CEO Christy Zeitz said in a release. "Today’s groundbreaking marks a historic milestone for Fellowship Square, a critical investment in the greater Reston community, and an important contribution to housing solutions in our region.”