Westfield Montgomery Owner Pays Off $350M Loan on Bethesda, Md., Mall

Unibail-Rodamco-Westfield (URW) has paid off a $350 million loan tied to the Westfield Montgomery shopping mall in Bethesda, Md., more than two years after the debt was transferred to special servicing.

The 1.2 million-square-foot mall’s loan had been scheduled to mature Aug. 1, Bisnow reported. Morningstar Credit described the payoff as a “rarity in a cycle” in which many mall loans continue to receive extensions.

URW secured the 10-year loan in 2014, with the debt tied to 836,000 square feet of the property. The mall received a two-year extension after missing its original August 2024 maturity date.

French mall giant URW won approval in 2020 to redevelop Westfield Montgomery, but that project has not started. URW did not immediately respond to a request for comment.

The payoff comes as URW has reversed course on its broader U.S. strategy. In 2022, the company said it planned to sell its $13.2 billion American portfolio, but last year opted instead to retain 11 high-performing flagship malls while continuing to unload non-core properties.

Meanwhile, Westfield Montgomery has continued adding retailers and restaurants. The mall said in July that new arrivals throughout 2026 would include Pop Mart and Wetzel’s Pretzels, among others.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.