Lloyd Center Saved: New Owner Rescues Mall From Foreclosure, Demo

PORTLAND, 0R —The Lloyd Center Mall, once the largest mall in the world, appears to have escaped the wrecking ball. Last month, $110 million in debt, it was foreclosed on and there was talk of redevelopment and possible demolition.

On Monday, Seattle-based Urban Renaissance Group announced they are partnering with owner, KKR Real Estate Finance Trust, inc. to revitalize the place,

As URG starts the process of deciding what the future Lloyd Center will be like, the place will remain open. While it has lost most of its so-called anchor tenants – often large box stores and department stores; Macy's left earlier this year – Lloyd Center is still home to about 100 shops.

"This is an amazing opportunity to invest in the heart of our city and we believe there is great potential for this uniquely situated property," URGs Portland Managing Director, Tom Kilbane, said. "We know many Oregonians have fond memories of Lloyd Center and we take seriously our responsibility for making sure it continues to be a community gathering place.

"As we begin the planning process, our ambition is to embrace and preserve features of the property that make it special, including retail, creative work spaces and ice skating."

While based in Seattle, URG has a Portland office and has been a player in the real estate scene for many years.

Their projects here include the development of the 140,000 square-foot Canvas office building next to Providence Park and a $28 million renovation the former Oregonian newspaper headquarters at 1320 SW Broadway, the renovation of the Yeon Building at SW 5th and Alder and the redevelopment of the JK Gill Building (formerly known as the McCoy building) at SW 5th and Harvey Milk Boulevard.

The mall, which opened in 1960, wasn't fully enclosed until more than 20 years later. It's well known for its skating rink.