As a life-long Salemite I’ve spent the majority of my career working in downtown Salem - a place near and dear to my heart.  Hours upon hours have been spent working, eating and playing in buildings officially designated as historic landmarks.  Working at the Ladd & Bush US Bank branch during college, managing a commercial loan portfolio at Pioneer Trust Bank, and working from our street-level office at First Commercial Real Estate are just a few of the unique places I’ve become intimate with over the years. 

Without a doubt, Salem, Oregon is one-of-a-kind as the State’s Capital city.  The core of downtown is known nationally as the Salem Downtown Historic District creating certain building parameters within the district for property owners.  As a result, city, state and federal incentives exist to create incentives to property owners who may otherwise feel substantial limitations to owning, redeveloping or maintaining the historic properties. 

The City of Salem’s Urban Renewal Agency has a team dedicated to the Riverfront Downtown Urban Renewal Area.  Owners can apply for grants to help with the rehabilitation costs.  The primary matching grant is called the Riverfront Downtown Capital Improvement Grant.  The State of Oregon Historic Preservation Office also facilitates state and national historic preservation incentives.  The two most common are the 20% Federal Tax Credit Program and the Special Assessment Program.  The 20% Federal Tax Credit Program provides a tax credit for 20% of the rehabilitation costs of the program.  From my experience, this program has the most restrictive and specific requirements for eligibility.  The Special Assessment Program (recently expired) is a State program which provides a 10 year property tax freeze on recently renovated historic buildings.

There is often a misconception of the investors and developers who purchase, renovate and own these properties, but the truth is that even with the aforementioned incentives, there is significant risk as one embarks on the process of adaptive reuse and historic preservation.  With risk, there is also return, but in most cases, that return is not realized for 10-20 years down the road.  Personally, I recognize these investors and developers as passionate Salemites who have a desire to improve our downtown core and bring new life to buildings that have lived a hard 100+ years in the Willamette Valley. 

Adaptive reuse refers to the process of taking a building meant for one use and repurposing it for another.  Historic preservation refers to the process of rehabilitation and reuse of historic buildings.  These processes often bring new jobs and housing opportunities to a community as a part of the revitalization.  Here are a few examples of properties rehabilitated in the last 10 years.

McGilchrist-Roth Buildings

I had the opportunity to work with the ownership team for the financing of this project 10 years ago.  The building was the former home to a convenience store, Jonathan’s Oyster Bar and a florist on ground level, but had been vacant, with the exception of pigeons, for 50+ years.  Ownership worked with CD Redding Construction to completely renovate the building, creating upscale apartments on the second floor and a new home to some of Salem’s most beloved coffee and dining establishments and professional offices on the ground level.  

Gray-Belle Building

The building was formerly home to several chinese restaurants over the last 40 years and was originally Salem’s finest restaurant, The Gray-Belle.  The developer and visionary was awarded the 2021 DeMuro Award from Restore Oregon for the project.  The main floor was renovated into Salem’s first food hall, Fork40, and the 50+ year dormant second floor was activated into 5 studio apartments which required building an exterior stair tower on the rear of the building.  

The Wexford (Formerly Whitlock’s)

The building was formerly Whitlock’s Sewing and Vacuum store on the main floor and a mix of unactivated second floor space including a former furniture showroom which was a faux Tudor style home built directly into the second floor.  The developer is currently renovating this building with eight apartments on the second floor and two large retail spaces on the ground floor.  

England-Wade Building (Formerly Greenthumb Florist)

FCRE recently represented the former owner in the disposition of this asset.  New ownership plans to have a unique approach to the adaptive reuse of the building/property with a historic renovation on the historic portion of the building with Commercial Street frontage and a full tear down of the rear alley portion which is currently a functionally obsolete asset.  The alley area will be home to a new 3-story building with 12 residential units. 

Enright-Halik Building

We recently represented the former owner in the disposition of this asset.  The building was home to Great Harvest Bakery for 30 years.  The new owner is working through an adaptive reuse of this building which will bring new energy to Court Street.  

Wallace & Mabel Moore Building

We recently represented the Buyer of this asset which has been vacant for the last three years.  The building is prime for redevelopment and the owner-user plans to use the Capital Improvement Grant to renovate the main floor for retail use and eventually bring housing to the second floor.  

Cooke’s Stationery 

We are currently representing the owners of the building in the disposition of the building owned in their family for 70+ years.  The property is under contract with a Buyer who plans an adaptive reuse of the building, bringing two separate retail spaces to the main floor and activating the dormant second floor with four upscale apartments.  

It has been an incredible honor to work with the owners and developers of these projects over the years to bring new life to our downtown community.  The famous JFK quote, The rising tide lifts all boats, truly applies to historic preservation of buildings in a downtown area like ours.  The economic and social benefits will be lived out for generations to come. 

THE PLUG
Listing of the Week

One of a kind wedding and event venue located just outside of Monmouth on the edge of Pedee with multiple areas, both indoor and outdoor, available to hold various special events. The 18 acre property offers a woodland ceremony site, two outdoor grassy areas, a reception space with built in dance floor and an indoor great room, two side by side cottages, a barn and workshop.

Conveniently located in the foothills of the Oregon Coastal Range just 20 miles from Corvallis and 25 miles west of Salem in the country just outside of Monmouth.

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COMMUNITY SPOTLIGHT
Uncorked Live, Family Building Blocks

17th Annual Uncorked, the mid-valley’s premier auction benefiting Family Building Blocks at Bryn Mawr Vineyards
Saturday, June 1, 2024
Black tie attire encouraged | 21+

Uncorked Live promises a truly luxurious evening with breathtaking views from Mt. Jefferson to the Van Duzer Corridor AVA. Guests will enjoy being immersed in “Italy in the Willamette Valley” as they are greeted with a glass of limoncello or bubbly! A stand-out event, Live features decadent hors d’oeuvres, a Super Silent Auction with rare and large format fine wines, a gourmet three-course dinner with wine pairings, live music, and more. Delight in handcrafted cocktails and dance in the vineyard as the sun sets over the serene landscape of our beautiful region. Raise your glass and paddle with us to "Keep Children Safe and Families Together!"

Have questions? Click here to learn more.