Tag: Mall205

Proposed Chick-fil-A on SE Stark

A recent land-use Early Assistance application indicates Chick-fil-A may soon open a new restaurant on SE Stark Street. If approved, developers will demolish the 1984-era building and construct a new fast food restaurant with a drive-thru window. Located at 9950 SE Stark Street, the 36,590 square-foot half-block property currently houses an adult entertainment club and bar.

The Chick-fil-A development team intends to construct a 4,991 square foot building with 98 indoor seats for guests. Outdoor canopies and an outdoor eating area with 12 patio seats would surround the new building. The property sits between SE Stark and SE Washington Streets, aligned at SE 99th Avenue near Mall 205. The site offers a variety of vehicle access points and is near the number 15 TriMet bus line. Other Chick-fil-A restaurants tend to attract many visitors, sometimes with lines spilling onto the neighboring street. However, this proposed Chick-fil-A is just six miles from the Clackamas restaurant and seven miles from the Gresham location. That density of stores may reduce peak demand for the proposed eatery and avoid traffic issues sometimes seen at other Chick-fil-A sites.

Developers use Early Assistance applications during the pre-planning phase of a project. Many proposals do not continue past this stage, and this Chick-fil-A may never materialize in this location. However, the addition of a popular destination restaurant in the area could draw in more visitors and improve business for neighboring stores. Expect to see updates regarding building permits if this project moves forward.

Mall 205 Sells to Investment Group

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.

1996 Plan for Mall 205 showing shops at the time

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.