Unibail-Rodamco-Westfield, the company that owns Westfield Wheaton mall, has defaulted on a loan worth $235 million — raising concerns about the mall’s future.
Westfield is discussing next steps, according to reporting from Washington Business Journal. A sale, refinancing or even foreclosure are all options on the table.
Westfield hosts major retailers like Costco, AMC Theatres, Target, Macy’s and Dick’s Sporting Goods. It is unclear whether a lack of income contributed to the loan default.
Shopping malls peaked in popularity in the 1980s and 1990s, but times are changing. Now, up to 87% percent of large shopping malls may close their stores within the next decade, according to Capital One statistics.
With the rise of online shopping, stores are no longer the primary motivator for mallgoers — movies, gyms and restaurants are.
The 1.6 million-square-foot mall opened on Feb. 5, 1960, as the first shopping mall in Montgomery County. At the time, it was the sixth-largest mall in the United States, with more than 400,000 visitors in the first week alone.
Whether or not the mall will take steps to close remains to be seen.
