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Salem industrial property sells for $105.5 million

By: Chuck Slothower//July 12, 2019//

Salem industrial property sells for $105.5 million

By: Chuck Slothower//July 12, 2019//

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A Salem warehouse occupied by Amazon, outlined in red at center, has been sold for $105.5 million. (Courtesy of Jones Lang LaSalle)
A Salem warehouse occupied by Amazon, outlined in red at center, has been sold for $105.5 million. (Courtesy of Jones Lang LaSalle)

A Salem warehouse operated by Amazon has been sold for $105.5 million.

The Mill Creek Logistics Center encompasses 1,018,020 square feet on 61.75 acres east of Interstate 5.

Jones Lang LaSalle represented the seller, a joint venture partnership of developer Capstone Partners and San Francisco-based finance partner PCCP (formerly known as Pacific Coast Capital Partners). Information on the buyer was not immediately available; the owner is still listed in Marion County records as a Capstone Partners entity.

“The one nice thing about being in Salem is you can serve the south end of the Greater Portland area, and you can go south very easily,” said Buzz Ellis, managing director of Jones Lang LaSalle in Portland. “That’s why I think we’ll continue to see logistics centers built in Salem.”

Other developers – most notably Specht Development – are also investing in Oregon’s I-5 corridor. Specht has 60 acres of industrial land in Woodburn that could accommodate up to 2 million square feet of warehouse space, according to the company.

Amazon agreed to a 12-year lease at the Mill Creek Logistics Center. The facility at 4775 Depot Court S.E. was designed by Mackenzie and built by general contractor Perlo Construction.

Capstone Partners may not be done building at the property. The Portland-based developer has remaining parcels large enough for one facility of about 1 million square feet and another of about 570,000 square feet, said Chris Nelson, co-founder of Capstone Partners.

“We’re real bullish on the potential for new projects on that site,” he said.

Capstone was the original master developer of the property, which had been owned by the state of Oregon. Plans to develop the site were delayed by the Great Recession.

“We had a very long-term view,” Nelson said. “We started to circle around the site again, and then this user (Amazon) came along and it made it a little easier go.”

Nelson said he expects future logistics properties will be marketed as build to suit instead of built on speculation because users are demanding a high level of individual customization.

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