Unibail-Rodamco-Westfield Secures Two-Year Extension for $350M CMBS Mall Loan
By Nick Trombola October 16, 2024 6:35 pm
reprints
A mall just outside Washington, D.C., has a new lease on life after its owners secured an extension for a nine-figure loan tied to the property.
Paris-based multinational developer Unibail-Rodamco-Westfield (URW) now has until August 2026 to pay off a $350 million commercial mortgage-backed securities (CMBS) loan tied to the Westfield Montgomery shopping mall in Bethesda, Md. The loan comprises the WFLD 2014-MONT Mortgage Trust deal, which has an outstanding balance of $333.5 million, according to Bisnow, citing Morningstar.
The loan, originated by UBS and Deutsche Bank (DB) in 2014, hit special serving in April ahead of its previous maturity date.
As part of the extension deal, URW will make a $16 million payment immediately, along with $5.5 million to be paid over the next two years. Yet the mall’s value has dropped significantly since the loan was issued, from a $680 million valuation in 2014 to $353 million this year, per Morningstar.
URW owns the majority of the 1.3 million-square-foot mall, which by the end of June was 80 percent leased. It does not own the property’s Nordstrom, Macy’s and Macy’s Home anchor locations.
A representative for URW did not immediately respond to a request for comment.
Since 2018, URW has planned the redevelopment of the mall into a mixed-use district with nearly 3 million square feet of retail space and more than 700 multifamily units. The developer secured project approval in 2020, though construction has still not commenced.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
