Right Sponsor, Right Center, Right Market: Financing a Retail Repositioning in the Portland Metro

Property Gallery 8 Photos

Gresham Town Fair Ross Dress for Less PetSmart Inline Shops New Tenant: Snap Fitness Pad Building Available Suite Site Overview

THE OPPORTUNITY
A Well-Located Center With Room to Grow

Gresham Town Fair had the things you can't manufacture: 25 acres at one of the most prominent intersections in Gresham, national tenants, and tenants who've stayed for more than a decade. What it needed was attention. When the sponsor went under contract to buy it, the center was about 73% occupied. The biggest vacancy was the former Jo-Ann space, left empty after the retailer's bankruptcy.

The sponsor knew this kind of deal well. They have a long track record of buying and repositioning retail centers across the Portland metro, and this was their seventh loan with RRA Capital. Northmarq's Patrick O'Malley brought the deal to RRA, and Marcus Goodwin led it on our side.

THE PROPERTY
264,634 Square Feet at the Heart of Gresham

Gresham Town Fair is a neighborhood retail center at 300-600 NW Eastman Parkway, where NW Division Street meets NW Eastman Parkway. Built in 1987, it spans 11 buildings on 25.65 acres, with more than 1,200 parking spaces and multiple ways in and out.

• Anchors: Ross Dress for Less and PetSmart
• Other national tenants: Aspen Dental, Burger King, Discount Tire, Dollar Tree, Snap Fitness, Visionworks and Unitus Community Credit Union
• Tenant stability: About half the tenants have been at the center for more than 10 years
• Transit: Walking distance to two MAX Light Rail stations
• Coming next door: The new East County Library, opening in 2026, expected to bring more foot traffic

The Gresham retail submarket has low vacancy and no new retail construction underway, so leased space in a well-located center like this one has little competition.

THE RRA SOLUTION
Acquisition, CapEx and Leasing Capital in One Loan

RRA provided a $26,800,000 non-recourse bridge loan with a 30-month initial term and an extension option. The loan closed on August 27, 2025. Most of it funded at closing for the acquisition, and because the center already had enough cash flow in place, no interest reserve was needed. The rest was set aside for capital improvements and for tenant improvements and leasing commissions, so the sponsor has capital ready as new leases are signed.

THE BUSINESS PLAN
Lease It Up, Freshen It Up, Create Flexibility

• Lease the vacancies, starting with the former Jo-Ann space. Dollar Tree and Snap Fitness have already opened.
• Refresh the center's look, including repainting most of the facades to give it a modern, inviting presence.
• Parcelize the outparcels so they can be sold individually over time.

This deal highlights our sponsor's local expertise and vision. With targeted leasing, cosmetic upgrades and the right team to execute, we're excited to see the value in this financing.

LOAN STATUS
Active

The loan is currently active, and the sponsor is executing the business plan. We'll update this case study when the loan pays off.