Former Nordstrom building in Salem Center purchased, may bring fitness, clothing businesses

Two West Salem residents have purchased the former Nordstrom building in Salem, teaming up with Portland developers to resurrect the downtown centerpiece.

The team is considering tenants in the clothing, entertainment, fitness and office-space sectors. It is expected to become a multi-use space, as opposed to the one store that previously occupied the approximately 60,000-square-foot building.

The deal for one of the most high-profile pieces of retail real estate in Salem closed Monday. It is a joint venture between Kelly McDonald and Patrick Carney, doing business as the limited liability company GoMacGo, and Portland-based real estate development firm Deacon Development.

Buyers declined to disclose many terms of the deal, including purchase price, though the building had been valued at around $9 million.

Earlier:Two West Salem residents under contract to buy former Salem Nordstrom building

Steve Deacon, chief executive of Deacon Development, said in a press release his firm was excited "to bring the iconic downtown building back to life."

Nordstrom closed its Salem location, once a jewel of downtown retail, in April 2018 following a decades-long run in the capital. President Jamie Nordstrom last year said company officials didn't believe investing in the Salem Center store was "the best approach" for the high-end Seattle retailer.

Longtime business partners McDonald and Carney had been under contract to buy the building at 420 Center St. NE, as the Statesman Journal first reported in March. McDonald is the managing partner of McMinnville's Granary District, a development with shops, restaurants and wineries.

McDonald at the time said one factor attracting the duo to the building was its location inside an opportunity zone and an urban renewal zone. The zones may let investors leverage capital gains tax breaks and taxpayer incentives.

Deacon Development's involvement kicked off in early April, McDonald said in an interview Monday. This type of development is "in their wheelhouse," which is why the pair approached Deacon Development in the first place, McDonald said.

Past coverage:Salem Center sold for $27 million after former owners defaulted on loan

McDonald said he wasn't authorized to name interested tenants, though he noted developers may have a letter of intent from a fitness tenant by week's end. Real estate broker David Demers with HSM Pacific Realty is working to lease out the space.

The Nordstrom building is a central component of Salem Center, so much so that when it first opened in 1980 it was called the Nordstrom Mall.

Jonathan Bach has been a business and City Hall reporter with the Statesman Journal since 2016. To support his work, Subscribe to the Statesman Journal. Email him at jbach@statesmanjournal.com, call (503) 399-6714 or follow him on Twitter @jonathanmbach.