In 2022, a California-headquartered real estate investment and management company purchased the Plaza 205 retail complex east of Mall 205. For over a decade, the struggling retail destination at SE 103rd and Washington Street followed the shopping mall decline seen across the country with prolonged vacancies and empty parking lots. Since taking ownership, Red Mountain Group has leveraged its relationship with the Asian supermarket chain 99 Ranch Market to become a new anchor store for this property. Many complimentary businesses have signed leases to fill most of the vacant space. The property owners have plans to expand the retail footprint by constructing sidewalk-accessible additions on the northern edge of the ample parking lot.
The 30-year-old Red Mountain Group owns just over 120 properties across 20 states, most of which are in Arizona and California. The privately owned company has an in-house group that works strategically to fill properties like Plaza 205 in various markets. “The leasing team that is working on this property is really the force behind it. They have a great relationship with 99 Ranch Market, and we have other properties where they have been our tenant. So with this property [we determined] that they would be a great tenant for it and partnered with them to revitalize the shopping center, bring in other tenants that would be great Co-tenants,” said Red Mountain Group representative Lisa Gray.
Earlier this year, crews divided the future 99 Ranch Market space to allow for the construction of three smaller storefronts sharing the grocery store’s frontage. This renovation allowed the anchor store to take over two spaces formerly used by Hometown Buffet and Office Max. The food retailer needed a significant footprint inside the store but only an modest entrance. That allowed for several shallow retail spaces at the front. However, shell construction delayed the speed at which new tenants could move in. Gray explained that Red Mountain Group’s leasing team often works ahead of acquisition to fill new properties. “Usually, we buy a property, and we can pre-lease. We really get leases done very quickly,” said Gray. In this case, most of the new stores moving into this shopping center will need to wait until early 2025 to open, and construction crews will take over a year before adding new structures at the complex.
Despite leasing delays due to buildout time, Red Mountain Group has secured tenants for all but one 2,401-square-foot retail space. Tea brand The Alley will take a space at 10542 SE Washington Street to the west of 99 Ranch Market at 10544 SE Washington Street. East of the grocery store, specialty restaurant chain Ten Seconds Yunnan Rice Noodle will open an eatery at 10546 SE Washington Street. Recently, Japanese department store Teso Life signed a lease for the 23,200 square foot former Big Lots location at 10548 SE Washington Street.
Having a high-profile tenant like 99 Ranch Market helped Red Mountain Group shift the direction of this shopping center away from decline and office tenants back to a growing retail segment. “We’re very excited about the future because of the tenants that are going in, including 99 Ranch. We have these concepts down [in California] where there is a great mix of tenants that are symbiotic; they really flow well with each other’s customer base,” explained Gray. Plaza 205 is the first Oregon property where Red Mountain Group applied that proven model. If it works well for them, they will look at repeating the process at other shopping centers in the area.
Homogenized big-box commerce is still on the decline across the country. However, culturally specific business clusters are rapidly filling that gap in American shopping centers. This shift presents an opportunity for retail landlords to rework investments with a greater variety of storefront sizes and to consider underserved communities when leasing. People should expect to see a more active shopping experience at Plaza 205 in 2025 as tenants complete their buildouts and customers start visiting these new businesses.
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