Maryland marked a milestone Monday in its mission to develop parking lots along the MARC Penn Line by announcing the selection of two Baltimore-area builders for the first such project in Odenton.

Officials chose Homes for America and Questar Properties to transform a 10-acre parking lot on the west side of Odenton’s MARC station into a multiuse development including housing, retail and public space.

“This is an exciting step forward to utilize state-owned property by transit stations to our advantage and create new housing units and retail space that will grow our economy,” acting Maryland Transportation Secretary Samantha J. Biddle said in a statement.

The proposal from Homes for America and Questar, Biddle added, “best aligns with the Department’s and the community’s vision for the future of Odenton.”

The station, located about halfway between Baltimore and Washington, D.C., has historically been one of the busiest on the MARC Penn Line, the most popular of MARC’s three services. Overall MARC ridership numbers are up this year, according to Maryland Transit Administration data.

The development will be Gov. Wes Moore’s first crack at using the MARC commuter train system as a tool to help address multiple issues. Officials hope that converting surface parking lots into apartments and townhomes will chip away at a major statewide housing shortage, all while reducing road congestion and greenhouse gas emissions by doing so near public transportation. They also plan to increase MARC service levels over time as funding allows.

State officials identified the site roughly a year ago as one of two MARC station areas with the highest potential return on public investment for development. They cited its proximity to Fort Meade, Maryland’s largest employer, and the existing town center as well as full-fledged support from local officials as reasons it’s closer to shovel-ready than any other station.

The MARC Penn Line development plan does, however, note that wetlands and major roads fragment the available Odenton parcels, posing a challenge for connecting them with one another for foot traffic.

Officials said the Odenton development will feature 585 multifamily housing units, 150 of which will be affordable or priced for the county’s workforce. There will also be 30,000 square feet of retail and 180,000 square feet of “public amenity space.” Pedestrian and bicycle pathways are expected to improve access to the train and surrounding community.

Officials estimate the development will cost $200 million.

Anne Arundel County is supporting the project by paying $56 million to build a 1,100-space commuter parking garage adjacent the development. Federal officials awarded $4 million for the garage, while Maryland chipped in with a $750,000 grant.

Officials expect to break ground on the garage in 2026; the timing for the mixed-use development is unclear at this point.

Anne Arundel County Executive Steuart Pittman, the chair of the state Democratic Party, remembered in a statement bringing Moore to the Odenton station when he was still a candidate for governor.

“We discussed smart growth, transit-oriented development, and the prospect of housing for our essential workers. His team has moved forward more rapidly than I imagined,” Pittman said, adding that he was “thrilled” the builders selected were locally headquartered.

Executives for the local developers expressed excitement about being chosen to see the project through in separate statements.

“At Homes for America, our mission is to expand access to high-quality, affordable housing and create opportunities for residents to thrive,” said Dana Jones, the Annapolis-based company’s president and CEO. “We are proud to help fulfill that mission by bringing affordable homes to this new mixed-use, mixed-income community with incredible transit access.”

Zachary Gorn, executive vice president of Baltimore-based Questar, added that the company was “honored” to be part of a partnership slated to “deliver a unique mixed-use development in one of Maryland’s most connected locations.”

Transportation officials predicted the project will yield $270 million in tax revenue for Maryland and Anne Arundel County over 30 years and up to 117,000 annual MARC trips at full build-out.