KKR Real Estate Finance Trust Inc. has provided a $177 million loan to a Cypress Equities affiliate for the renovation and stabilization of a Portland shopping center.
The floating-rate loan will be used to finish executing a capital improvement plan and facilitate new leasing at Lloyd Center, 1.27 million sq ft regional shopping center with office space in Portland’s Lloyd District.
CAPRF is exclusively focused on acquiring value-add retail real estate and is comprised of an investor base including public and corporate pensions, sovereign wealth funds, endowments, foundations, family offices and fund of funds investors.
The fund, launched in June 2012, reached its $400 million hard cap on June 20, 2014 and has acquired more than $700 million in assets, which in addition to Lloyd Center includes Eden Prairie Center in Minneapolis, Minnesota; Brookwood Village in Birmingham, Alabama; The Streets of Woodfield in Chicago, Illinois; and Glendale Marketplace in Los Angeles, California; among others.
Lloyd center was constructed in 1960 and underwent renovations in 1991 and 2006 prior to the current renovations, which began in 2014. With more than 130 tenants, the property is home to Macy’s, H&M, Marshalls, Barnes & Noble, PacifiCorp, Forever 21 and a variety of office tenants.
Working with local Portland firm Waterleaf Architecture, Interiors and Planning, improvement plans include converting space previously occupied by retail tenants into creative office space, enhancing connectivity to nearby office and multi-housing developments, reconfiguring an ice rink and updating the food court, flooring, entrances and storefronts, in addition to lighting and mechanical system upgrades that will make the property more energy efficient.