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URW pays off $350M loan tied to Westfield Montgomery in Bethesda
The 1.2 million-square-foot mall had been scheduled to mature Aug. 1, and URW described the repayment as a rarity as many mall loans keep getting extensions.
Unibail-Rodamco-Westfield (URW) has paid off a $350 million loan tied to the Westfield Montgomery shopping mall in Bethesda, Maryland, more than two years after the debt was moved to special servicing, Commercial Observer reports. The 1.2 million-square-foot mall’s loan was originally set to mature Aug. 1, with Morningstar Credit characterizing the payoff as a rarity in a cycle where many mall loans continue to receive extensions. URW secured the 10-year loan in 2014, and the debt was tied to 836,000 square feet of the property.
URW also previously received a two-year extension after missing its original August 2024 maturity date. Although the company won approval in 2020 to redevelop Westfield Montgomery, the redevelopment project has not started, and URW did not immediately respond to a request for comment. The payoff lands as URW has reversed course on its broader U.S. strategy. In 2022, URW said it planned to sell its $13.2 billion American portfolio, but last year it opted to retain 11 high-performing flagship malls while continuing to unload non-core properties.
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, according to the outlet.