The developer of the 478-acre Westphalia Town Center mixed-use development in Prince George's County faces the prospect of defaulting on more than $34 million in debt, but that's a worst-case scenario the company's top local executive is confident will not come to pass.
Edward Fleming, regional president for Walton Development and Management, said affiliate Walton Westphalia Development Corp. has received 30-day extensions to avoid defaults on two of the project's maturing loans, including one for $23.2 million set to mature this past Saturday.
The day before, on Friday, Walton sounded an early warning bell that it did not have "sufficient cash resources" to repay the debt unless the loan terms were extended. The maturity dates on the two multimillion-dollar loans have now been pushed out to Nov. 15 and Nov. 21, while negotiations over a longer-term extension continue. Fleming said he fully expects to resolve the debt issues and continue with the project's ambitious goal of creating a vibrant town center and mixed-use project north of Pennsylvania Avenue and northeast of Joint Base Andrews.