Suburban DC Mixed-Use Development Lands Refi
- Jul 04, 2017
Walton Westphalia Development Corp. refinanced its multi-use project, Westphalia Town Center, located in Prince George’s County, Md. The refinancing allows the company to continue the development of the project, delivering lots to homebuilders and preparing land for commercial and retail uses.
The senior lender has agreed to extend the maturity date from June 30, 2017 to Nov. 15, 2017, with a 0.5 percent extension fee at closing with no change in interest rate. The mezzanine lender increased the loan by $7 million and extended the maturity date from July 6, 2017 to Nov. 15, 2017, while the rate will increase from 15 to 17.5 percent with a 3 percent fee at repayment. Out of the $7 million, approximately $5.8 million will repay the senior lender and the remainder will be used to fund the costs. This refinancing anticipates the advancement of funds from MCFI Global Fund Westphalia LLC later this year, as previously announced.
Walton continues to work with County staff on a potential public financing option that would provide bond sale proceeds for transportation infrastructure improvements through a tax increment financing plan of special obligation bonds or another municipal bond issuance. During the last quarter of 2016, Prince George’s County council voted unanimously in favor of the TIF, establishing the Westphalia Town Center Development District and the Westphalia Town Center special taxing district.
Residential, Office and Retail Uses
Westphalia Town Center is a mixed-use master-planned community located on 310 acres in Upper Marlboro, approximately 10 miles southeast of downtown Washington, D.C., directly across State Route 4 and approximately 2 miles from Interstate 495. The complex will be a walkable hub, offering residential, office and retail uses. The first phase of the project will be home to more than 700 residences, 150 hotel rooms and approximately 500,000 square feet of retail space.
Walton is currently delivering lots to three homebuilders under purchase and sale agreements that cover all of the 346 townhomes in Phase I of Westphalia Town Center. The local builders are Ryan Homes, Haverford Homes and Mid-Atlantic Builders. All developers are on or ahead of schedule with their purchase of lots. The multi-phase development of Westphalia Town Center is planned to take place over a two- to three-decade period, according to the Prince George’s County Planning Department.
Image courtesy of Walton Westphalia Development Corp.