HFF Secures $177 Million in Financing for Portland’s Lloyd Center Mall

by Katie Sloan

Portland, Ore. — Holliday Fenoglio Fowler LP (HFF) has arranged a $177 million loan for Lloyd Center Mall, a 1.27 million-square-foot regional shopping center with office space in Portland’s Lloyd District.

Lloyd Center Mall was originally constructed in 1960 and underwent renovations in 1991 and 2006, prior to the current renovations, which began in 2014. The property features more than 130 tenants, including Macy’s, H&M, Marshalls, Barnes & Noble, PacifiCorp, Forever 21 and multiple office tenants.

Dallas-based HFF worked on behalf of the borrower, Cypress Acquisition Partners Retail Fund, an affiliate of Cypress Equities, to secure the floating-rate loan through an affiliate of KKR Real Estate Finance Trust Inc.

Loan proceeds will be used to finish executing a capital improvement plan and facilitate new leasing.

Improvement plans for the center include converting space previously occupied by retail tenants into office space, enhancing connectivity to nearby office and multifamily developments, reconfiguring the ice rink and updating the food court, flooring, entrances and storefronts.

Additional improvements to the lighting and mechanical systems will make the property more energy-efficient.

Lloyd Center Mall is located in the mixed-use area known as the Lloyd District, a live-work-play neighborhood northeast of central Portland. The center is adjacent to Interstate 84, the region’s main east-west transportation route, and near to Interstate 5, Portland’s main north-south transportation corridor. The TriMet MAX light rail and other public transportation systems provide direct access to the property.

Portland firm Waterleaf Architecture, Interiors and Planning provided assistance for the improvements.

Cullen Aderhold, director, Trey Morsbach, senior managing director, and Tom Wilson, managing director, led the HFF team representing Cypress.

Cypress has developed or acquired more than 18 million square feet and currently is developing or managing a portfolio of more than 10 million square feet of retail, office, residential and automotive real estate.

HFF is a provider of commercial real estate and capital markets services to the U.S. commercial real estate industry, including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing.

—   Scott Reid

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