PRINCE GEORGE'S COUNTY, MD-Walton Westphalia Development Corp. and Walton Westphalia Europe, LP have secured $46.2 million in construction and mezzanine financing for phase 1 of the Westphalia Town Center, a 310-acre mixed use project. George Smith Partners' Malcolm Davies arranged the financing, along with Peter Kleinberg and Drew Sandler.
It was the mixed-use component that sold the lenders, according to a statement by Davies, as "land development construction financing remains difficult to secure in today's real estate finance market."
The $46.285 million construction loan closed with a combined loan-to-value of 59.1% and a 66.7% combined loan-to-cost.
The Westphalia Town Center will consist of 845 single family residences and townhomes, 884 rental apartments, 600 hotel rooms, 2,240,000 square feet of office, and 534,000 square feet of retail. Entities managed by the Walton Group acquired the land in February of 2012 for $23.7 million.
The site will be located directly across from Joint Base Andrews Naval Air Facility—an under retailed part of the region, according to Bill Doherty, CEO of the Walton borrowers.
"Once this residential and retail construction is underway, we anticipate we will see an increase in momentum in the local market, which should fuel the next two phases of our development."
The Westphalia Town Center project will be developed in three phases. Initial site work will be completed in phase 1.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
