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Westphalia Developer Nears Deals For Grocer And Hotel, Looks To Sell Future Phases

A rendering of Westphalia Town Center.

Prince George's County's 310-acre Westphalia development appears to be making major strides toward becoming reality. 

The development team is working on deals with a grocery anchor and a hotel, it announced Wednesday, and it is in talks to sell parcels for future phases to other interested developers.

Walton Westphalia Development Corp. has executed a letter of intent with a hotel developer and operator for a 100-room hotel with the option for a second 100-room hotel. Kimco Realty, Walton's retail partner, is in negotiations with a grocer and expects to have a letter of intent signed this quarter.

The deals, first reported by the Washington Business Journal, come after the developer closed a major refinancing deal on the project's debt in July to avoid a potential default. 

The 310-acre site is on Pennsylvania Avenue in Upper Marlboro, just east of Joint Base Andrews and about 2 miles from the Beltway. The project's first phase calls for up to 700 residential units, 150 hotel rooms and 500K SF of retail. Three homebuilders — NVR, Haverford Homes and Mid-Atlantic Buildings — have bought a total of 205 lots on the property and have sold 231 homes. 

The development team is looking to sell the parcels for Phases 2 and 3 of the project. It has received three LOIs and is in discussion with one of the parties, a "well-established regional developer."