$1B Portland Mixed-Use Project Moves Forward

A Portland landmark, Lloyd Center will be transformed into a mixed-use complex. Image courtesy of ZGF and Field Operations

The redevelopment of Lloyd Center, a 1.2 million-square-foot mall in Portland, Ore., moves forward. The owners, Urban Renaissance Group and KKR Real Estate Finance Trust, have revealed the conceptual master plan that will transform the retail asset into a mixed-use property.

According to KGW8, plans for the reimagined property—estimated to cost around $1 billion—could include the demolition of parts of the mall, followed by the development of as many as 5,000 residential units, a restaurant and other entertainment venues and experiential retail, alongside a commercial office campus, in a years-long process.

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The redevelopment also calls for connecting the city’s street grid with improved transportation networks for cars, bikes and pedestrians, as well as maintaining the mall’s ice-skating rink. Located at 2201 Lloyd Center, the property is across Holladay Park and less than 2 miles from downtown Portland.

URG and KREF have owned Lloyd Center since December 2021. In October that year, KREF announced it will foreclose on the outstanding balance of a $117 million loan it provided to EB Arrow for the mall in 2015, a loan that had been in non-accrual status since October 2020. A transfer of ownership followed.

EB Arrow had purchased the asset in 2013 for $148 million, according to CommercialEdge data. OPB reported that in the following years, several tenant anchors closed their stores, including Sears, Nordstrom and Macy’s.

Over the past two years, however, the property’s roster has expanded with 32 new leases and 90 percent of the existing tenants have renewed their commitments, bringing the total to 120 tenants. Trackers Earth and Joe Brown’s Carmel Corn are among the businesses taking space at the mall. The developers are planning to keep the mall open during the renovation process.

Revitalizing a Portland landmark

Lloyd Center first opened in 1960 and later in 1990 was remodeled and covered. URG and KREF now have submitted an application for a DAR meeting with the City’s Design Commission which will then be followed by a formal Central City master Plan land use application.

The development team includes ZGF, serving as lead master planner, together with architectural and urban design firm Field Operations. DOWL (civil engineering), KPFF (structural engineering), DKS Associates (transportation engineering) and Radler White Parks & Alexander LLP (land use counsel) are also on board.