Urban Renaissance Group (URG) and KKR Real Estate Finance Trust (KREF) have unveiled plans for the redevelopment of Lloyd Center, a 1.2M SF mall in Portland, OR.
Plans for the redevelopment, which could cost as much as $1B, will include replacing part of the mall with up to 5,000 residential units, a restaurant, entertainment venues and a commercial office campus, according to a report on KGW8, a local TV affiliate.
The news report said the redevelopment plan calls for connecting the city’s street grid with an improved transportation network for cars, bike and pedestrians.
Lloyd Center, which is located at 2201 Lloyd Center across from Holladay Park about two miles from downtown Portland, is planning to maintain its ice-skating rink, the report said.
URG and KREF have owned Lloyd Center since December 2021. During the past two years, the property’s roster of tenants has expanded to include 32 new leases, bringing the total number of tenants up to 120.
The development team for the redevelopment of Lloyd Center, which will remain open during the renovation, includes lead master planner ZGF, as well as architectural and urban design firm Field Operations; DOWL, a civil engineering firm; DKS Associates, a transportation engineering firm; and Radler White Parks & Alexander LLP, land use counsel. Lloyd Center opened in 1960 as an outdoor more and then was renovated as an indoor mall in 1990.
Seattle-based URG has had great success renovating and reselling buildings with a long history. In 2016, Seattle-based URG led the redevelopment of the landmark Oregonian newspaper HQ in Portland, a $28M core and shell renovation of a landmark built in 1947. URG partnered with Clarion Partners on the newspaper renovation after purchasing the property at 1320 Broadway in 2013 for about $14M.
The renovation strategy was centered on exposing the original volumes in the building, embracing the mid-century modernist aesthetic and reconnecting the building to SW Broadway by adding street-front glass. Three years after acquiring the Oregonian Building and renovating it, the partners sold the property to Credit Suisse for $95M, which at the time was a new per-square-foot record for Portland office buildings.
