PORTLAND, Ore. (KOIN) — When it opened in 1960, it was thought to be the largest shopping center in the United States. Now, the end is near for the Lloyd Center.

The Lloyd Center is being foreclosed after its owners failed to make payments on a 2015 renovation plan.

The KKR Real Estate Finance Trust told KOIN 6 News they are taking ownership of the mall by the end of the year and will begin working with local partners on long-term redevelopment of the site.

In a statement, a KKR spokesperson said:

“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.”

In July 2017, an 18-month renovation of the mall featured a ribbon-cutting of the grand entrance and the spiral stairway. It’s reminiscent of the spiral staircase that was in the mall when it opened in 1960. The renovated ice skating rink — in operation since the mall first opened — was completed in November 2016.

Nordstrom and Sears left the mall years ago. Then in November 2020, Macy’s at Lloyd Center announced they would permanently close by January 31, 2021.

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Vanessa Sturgeon, the president of TMT Development, said this is exciting news for Portland.

“It’s a huge investment and a very long-term project, so it means that they’re betting on Portland for the long-haul and it will do wonders to reinvigorate that area that’s currently just kind of really slow and sleepy,” said Sturgeon, whose grandfather built the Lloyd Center cinemas. “So it’ll be exciting for the neighborhood, but all of Portland as a whole.”

She is one of many who remember a time when the Lloyd Center was thriving and hopes to see that happen again in the future. Sturgeon said she’s looking forward to learning more about what is planned for the site.

KKR did not share any more details about the proposed redevelopment, but the foreclosure will not impact holiday shopping in 2021.