Update – Last night, the Willamette Week published an article revealing that Mall 205’s new owners intend to renovate the interior shopping space and asked tenants to move out by the end of the month. Target and Home Depot, having already closed off their stores from the Mall portion of the building, should not suffer any disruption by this change. Many other small tenants are scrambling to find new retail locations, with some moving to Lloyd Center. Renovation plans are not yet known. However, the article references a plan to divide the traditional mall space between two new tenants.
Original article published February 1st, 2022
Last month, Gerrity Group sold Mall 205 at 10100 SE Washington Street to Rhino Investments Group. The Business Tribune reported on the $43.2 million sale, noting the new owners will consider redevelopment opportunities for the property. Target Cooperation maintains its ownership of the attached Target store building and the adjacent parking lot.
This purchase is the buyer’s second commercial property acquisition in Portland. Last summer, Rhino Investments Group bought the shopping complex Powell Villa located at 3510-3544 SE 122nd Avenue. Both retail properties are of a similar age with high occupancy rates. Although somewhat popular during their first few decades, each shopping center has declined due to competition from newer retail destinations.
Mall 205 opened in September 1970 and maintained consistent operation until the turn of the century, when it began losing big-name stores. At that point, the mall refreshed its anchors with Home Depot and Target. In July 2014, Gerrity Group bought the property for $76.5 million. That purchase price included the Plaza 205 development across SE 96th Avenue from Mall 205.
Despite the new high-traffic anchor stores, shops inside the mall struggled to find success, with Bed Bath & Beyond recently closing its doors. Rhino Investments Group’s involvement in Mall 205 could induce the improvements this location has needed for years. The new owners likely plan new developments at the site to increase the property’s value and generate a return on their investment. That work should create a better shopping environment and a more appealing complex.