In April, Biz Journals reported that Unibal-Rodamco-Westfield (URW) had defaulted on a roughly $235 million securitized loan tied to Westfield Wheaton, the largest mall in suburban Maryland (DC Region) and the fourth largest in the Greater Washington area. The mall was originally built in 1958 and was known as Wheaton Plaza, the first shopping mall in Montgomery County.
According to an August 18 BisNow report, Westfield has reportedly reached a deal to sell its 1.6 million square foot Wheaton mall, now valued at $136 million, a 66% drop from its $402 million appraisal a decade ago. The property has been in special servicing since March after the $235 million mortgage matured without repayment, and a potential buyer has offered to acquire the loan and assume the debt.
The mall, anchored by Target, JCPenney, Costco and Macy’s, was 97% leased as of March, and negotiations are underway with the special servicer on next steps. Westfield Wheaton’s struggles follow similar valuation declines at Westfield Montgomery mall in Bethesda, which saw its appraisal fall from $680 million to $353 million last year.