Remodeled Mixed-Use
New
For Sale
$8,226,000
249 -255 Liberty Street Southeast, Salem, OR 97301
Two adjoining downtown buildings support restaurant, office, residential, and retail occupancy.
Property Size34,659 SF
Days on Market6
Property Features for 249 -255 Liberty Street Southeast
General Information
Standard status
Active
Size
34,659 SF
Property subtype
Retail
Building Details
Building Size
34,659 SF
Year Built
1927
Year Renovated
2006
Buildings
2
Construction
concrete
Tenancy
Multi
Listing Agency:
SVN | Commercial Advisors LLC
(503) 559-7990
Listed By:
Curt Arthur, SIOR · License #201230204
(503) 559-7990
Source:
Buildout
Added: Aug 26
Changed: Aug 30
Last Checked: Aug 30 at 9:11PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of SVN | Commercial Advisors LLC
Investment Insights
Based on property information with market context.
The property comprises two adjoining mixed-use buildings at 249–255 Liberty Street Southeast in downtown Salem. The improvements were remodeled in 2006 and feature exposed concrete walls, with occupancy spanning restaurant, office, residential, and retail uses. The rent roll includes The Cozy Taberna restaurant along with office, residential, and other retail tenants.
Electric Alley runs directly behind the buildings, adding a distinct service-alley setting to the property. The site is next to The Forge, a renovated four-story commercial building with Clink! restaurant, Jade Dumpling & Noodle House, Anthem Strategies, and additional commercial occupants. The property was listed with a National Historic District in 2006.
Electric Alley runs directly behind the buildings, adding a distinct service-alley setting to the property. The site is next to The Forge, a renovated four-story commercial building with Clink! restaurant, Jade Dumpling & Noodle House, Anthem Strategies, and additional commercial occupants. The property was listed with a National Historic District in 2006.
Key Highlights
- Two adjoining mixed‑use buildings in downtown Salem
- 2006 remodel with exposed concrete walls
- Rent roll includes The Cozy Taberna restaurant
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$477,254
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.80%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$9,545,080
$9.5M
Cap Rate 7%
$6,817,914
$6.8M
Cap Rate 9%
$5,302,822
$5.3M
Market Conditions
NOI Build-Up for 34,659 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$748.6K $21.60/SF
− Vacancy
−$112.3K −$3.24/SF
EGI
$636.3K $18.36/SF
− OpEx
−$159.1K −$4.59/SF
NOI
$477.3K $13.77/SF
Area
Salem, OR
Vacancy
15.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$9,545,080
Cap Rate 7%
$6,817,914
Cap Rate 9%
$5,302,822
Alternative Uses
Best Use
Office B
$6.82M
$5.97M – $7.95M
NOI $477,254 @ 7.0% cap · market cap 5.80%
Second Best
Retail
$5.96M
$5.21M – $6.95M
NOI $417,052 @ 7.0% cap · market cap 5.07%
Theoretical Best
Office A
$9.20M
$8.05M – $10.74M
NOI $644,158 @ 7.0% cap · market cap 7.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
3,569
Businesses Nearby
Explore this area
Business Placement
Demographics for 97301, OR
56,393
Population
21,419
Households
2.6
Avg Household Size
34
Median Age
18%
College-Educated
81%
High-School Grad
11.3 sq mi
ZIP Area
4,991
Density / Sq Mi
$57,497
Median Household Income
$33,220
Median Earnings
$1,197
Median Rent
$310,800
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two adjoining downtown buildings support restaurant, office, residential, and retail occupancy.
Where is this mixed-use property located?
The property is located at 249 -255 Liberty Street Southeast Salem, OR.
What is the asking price?
The asking price for this property is $8,226,000.
What are key features of this property?
This property features: Two adjoining mixed‑use buildings in downtown Salem; 2006 remodel with exposed concrete walls; Rent roll includes The Cozy Taberna restaurant
