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American Assets Trust is downshifting as it plans for Oregon Square, the massive superblock development expected to serve as an anchor for the Lloyd District.

The revised plan to split the project into two phases comes amid efforts to attract tenants to American Assets Trust’s most recent multifamily project, Hassalo on Eighth.

Wade Lange, vice president and regional manager for American Assets Trust, confirmed that the developer now prefers to build Oregon Square in two phases.

鈥淲e’re looking at that as an awful big piece to add right now,鈥� he said Tuesday. 鈥淲e’re looking at a phased approach.鈥�

Early assistance from the city of Portland’s Bureau of Development Services has again been requested for the project. Oregon Square previously won approval from the Design Commission in November.

New plans call for a western phase fronting Seventh Avenue with two buildings, one 11 stories and another 24 stories, with an eastern phase to follow.

The first phase would encompass approximately 560 residential units, depending upon the mix of apartment sizes (still under review), and about 14,000 square feet of retail space.

鈥淲e’ve asked our architects to keep it as close to the previously approved design (as possible),鈥� Lange said.

American Assets Trust is working with GBD Architects of Portland. GBD’s Kyle Andersen is listed as the applicant.

American Assets Trust still intends to move forward, Lange said, even though more developers are openly worrying that supply of multifamily units is outpacing demand.

鈥淲e’re still excited about the potential, particularly in the Lloyd District, close in, eastside,鈥� he said. 鈥淭he options with transit and such make this an ideal location. Even if the market slows, we’ll have a location and a product that appeals.鈥�

The retail space’s design is still being developed by GBD and American Assets Trust.

鈥淥ur meeting with the city is going to be very helpful in that,鈥� Lange said.

A contractor has not yet been selected for Oregon Square.

鈥淭hat’s a ways down the road,鈥� Lange said.

Hassalo on Eighth was completed in 2015. Lange said the aim is for the 657-unit complex to be 95 percent leased by the end of the year.

鈥淲e’re really tickled with where we are right now, but ideally if we could be stabilized on the project before we phase the next phase (at Oregon Square), if you will, that’d be great,鈥� he said.

Overall, 364 units, or 55.4 percent, at Hassalo on Eighth were leased by March 31, according to American Assets Trust’s first-quarter financial results. The Velomor building was the most fully leased at 85.3 percent, up from 81.9 percent at the end of 2015. But Aster Tower was only 44.8 percent leased, up from 29.1 percent, while Elwood was 43.4 percent leased, up from 24.5 percent.

At the same time, rents declined. The average monthly base rent per leased unit fell from $1,584 to $1,500 at Velomor, from $1,447 to $1,353 at Aster Tower and from $1,309 to $1,302 at Elwood.

Portland’s apartment market has been among the hottest in the nation, but there are some signs of cooling at the top. Park Avenue West‘s luxury apartments are only 15 to 20 percent full. And six weeks’ free rent reportedly is being offered to attract new tenants to Block 17 Apartments in the Pearl District.

A pre-application conference for Oregon Square is scheduled for June 14.