Smith knows the 23-year old ex-Arsenal defender well and said he was keen on having a closer look at Gilbert at one stage before talks broke down, mainly because of mnoey.
"Kerrea is somebody I was always very aware of, and he could have been quite a nice addition to our group," Smith told MLSsoccer.com. "We did start a dialogue, but it just didn't fit.
"It wasn't something that financially could fit into the budgets we had, and it wasn't really a necessity to add another right back when there are other areas that need more attention.
"I am sure he will do very well for [Portland]," Smith concluded.