KKR Plans to Seize Portland, Oregon, Mall With $110 Million Loan

KKR & Co.’s real estate lending arm plans to repossess a shopping mall in Portland, Oregon, that’s struggling under $110 million of debt.

“We intend to foreclose and to take ownership of the asset, enabling us to optimize value over the near and medium term,” Patrick Mattson, president and chief operating officer of KKR Real Estate Finance Trust Inc., said during a conference call with investors Tuesday.

The loan on the Lloyd Center, once Portland’s largest mall, was originated in 2015 and put on non-accrual status last October, with a $40.3 million credit loss, according to a ...