Lloyd Center Mall Faces Foreclosure After Owners Miss Too Many Payments

There's more bad news for Lloyd Center Mall. The longtime hangout now faces foreclosure after the owners missed payments on a 2015 renovation plan, according to KOIN 6.

KKR Real Estate Finance Trust told reporters Monday (November 1) the Northeast Portland mall will be under their ownership by the end of the year. Lenders say they'll be working with local partners for long-term development of the site, including homes and office spaces.

OregonLive found out the owners haven't been making payments toward their $110 million debt since October 2020. A KKR spokesperson explained the situation in a statement:

“KKR Real Estate Finance Trust provided a loan to finance the renovation of Lloyd Center in 2015 and we have been working with the property owners since October 2020 after they were unable to make scheduled payments on the loan. We plan to take ownership of the property before the end of this year which will enable us to begin working with local partners to prepare for a long-term redevelopment of the site.”

Reporters say KKR loaned $177 million for the 2015 renovations, which included a spiral stairway and a refreshed skating rink.

While the COVID-19 created many headaches for the Lloyd Center owners and employees, OregonLive claims the mall has been losing foot traffic before 2020. Major retailers, including Nordstrom, Sears, and Marshalls, have left the decades-old mall. Macy's was the latest departure, closing down its store in the mall earlier this year.

Reporters reached out to the Lloyd Center owners for comment, but they did not receive any.