If you grew up in East Portland, Mall 205 probably feels like a ghost story you can actually walk through. Or at least, it used to. For years, the local running joke was that you only went there to get your license renewed or to buy a hammer at Home Depot while trying to avoid the "vibe" of the interior hallways.
It’s weird. Honestly, the place has been "dying" for so long that people were shocked when it actually, technically, died. In 2022, the interior mall officially shut its doors to the public. No more wandering past the closed-up storefronts or checking out the magic shop.
But here is the thing: Mall 205 isn't gone. It's just evolving into something that looks a lot less like a 1970s time capsule and a lot more like a standard power center.
The "Death" of the Indoor Mall
The big shift happened when Rhino Investments Group scooped up the property for $43 million. They didn't want a traditional mall. Let's be real—nobody does anymore. The "dead mall" aesthetic is cool for YouTube urban explorers, but it’s a nightmare for a balance sheet.
By March 2022, the new owners basically told the remaining small businesses it was time to pack up. This included the fan-favorite All-American Magic and Demba, both of which ended up migrating over to Lloyd Center.
Then came the walls.
Target and Home Depot, the two massive anchors that actually keep the lights on, walled off their interior entrances. If you go there today, you aren't "going to the mall." You’re going to a Target. You’re going to a Home Depot. The connective tissue that made it a shopping center is being surgically removed.
What happened to the DMV?
This was the big one. For a long time, the Oregon DMV was the only reason anyone under the age of 70 ventured into the interior part of the mall. It was one of the busiest offices in the state, serving nearly 95,000 people in 2024 alone.
Well, as of January 2025, it's finished. The DMV cited "maintenance issues"—which is government-speak for the HVAC system being a mess and the roof probably leaking—and they bailed. They’re currently looking for a new home, but for now, that corner of the building is just another empty shell.
Why Mall 205 Still Matters in 2026
You’d think with the DMV gone and the interior walled off, the place would be a wasteland. It’s actually the opposite. The Gateway district is having a weird, chaotic renaissance.
Right across the way, 99 Ranch Market opened up in the old Plaza 205 space, and it’s been absolutely packed. We're talking hour-long lines just to get in when it first launched. This has changed the gravity of the whole intersection.
The New Tenants
Rhino Investments isn't just sitting on empty space. They’ve been reconfiguring the floor plan to give every store its own outside entrance. No more creepy hallways.
- Burlington (formerly Burlington Coat Factory) signed on to take over a massive chunk of the space.
- Hobby Lobby has been the name floating around for the other anchor spot.
- Urban Air Adventure Park is moving in to provide some "entertainment" value, which basically means a place for kids to jump on trampolines while parents shop at the Home Depot next door.
Even the food scene is changing. Love it or hate it, a brand-new Chick-fil-A opened right on the corner of SE Stark Street in early 2026. They even put in new "pedestrian infrastructure"—which is just a fancy way of saying they finally built decent sidewalks so you don't feel like you're risking your life walking from the bus stop.
The Dark History Nobody Mentions
You can't talk about Mall 205 without mentioning the Morningside Hospital.
Before the mall was built in 1970, this exact plot of land was a private psychiatric hospital. From the early 1900s through the 1960s, it was where the federal government sent patients from the territory of Alaska. It wasn't exactly a high-water mark for human rights.
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When the hospital closed and was demolished to make way for the mall, some people claimed the land was cursed. Whether you believe in ghosts or just bad urban planning, there’s no denying the mall has struggled with a "heavy" atmosphere for decades.
Is it worth visiting now?
If you're looking for a "mall experience," no. Go to Washington Square or even Lloyd Center for that.
But if you need to get stuff done? Mall 205 is actually becoming more efficient. It’s becoming a "superblock" of big-box retail. You’ve got the Target, the Home Depot, and now the Burlington and 99 Ranch nearby. It’s basically a one-stop-shop for the errands you’ve been putting off all week.
The "mall" is dead. The "shopping center" is very much alive.
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Next Steps for Your Visit
- Park near the South side: If you’re looking for the newer retail additions or the Urban Air entrance, the parking lot near the old DMV (Southern end) is where the most construction and renovation is happening.
- Check the Sidewalks: If you’re taking the MAX Green Line, use the new pedestrian paths near the Chick-fil-A on Stark; they’re much safer than the old dirt-and-gravel shoulder.
- Target Entry: Remember that you can no longer enter Target from the "inside." You have to use the main exterior doors. It sounds obvious, but you’d be surprised how many people still try to find the old hallway entrance.