Unibal-Rodamco-Westfield (URW) was reported to have fallen behind on a securitized loan of about $235 million in April by Business Journals. Westfield Wheaton is the biggest mall in suburban Maryland and the fourth largest in the Greater Washington area. When it was first constructed in 1958, the mall was called Wheaton Plaza, and it was the first mall in Montgomery County.
Westfield has reportedly secured an agreement to sell its 1.6 million square foot Wheaton mall, which is currently valued at $136 million, a 66% decrease from its $402 million appraisal ten years ago, according to a BisNow story dated August 18. Since the $235 million mortgage matured without being repaid, the property has been under special servicing since March. A prospective buyer has volunteered to buy the loan and take on the obligation.
As of March, the mall, which is anchored by Target, JCPenney, Costco, and Macy’s, was 97% leased. Discussions on the next stages are currently taking place with the special servicer. The difficulties at Westfield Wheaton come after comparable valuation drops at Bethesda’s Westfield Montgomery Mall, which saw its appraisal drop from $680 million to $353 million last year.
