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    Cannabis Facility Investment Opportunity Title is generated by Realmo AI

    560 21st St SE, Salem, OR 97301

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    Modern, fully upgraded cannabis facility with long-term tenants in Salem.

    Type:Industrial
    Property size:
    65,597 SF
    Lot size:
    3.10 Acres
    Price / SF:
    $111/SF
    Added:
    Oct 10, 2024
    Days on Market:
    605
    Last Refresh:
    May 12 at 9:14 pm

    Property Features for 560 21st St SE

    General Information

    Standard status
    Active
    Size
    65,597 SF
    Lot size
    3.10 Acres
    Property subtype
    Industrial

    Building Details

    Year Built
    1955

    We can help!

    Listing Contact
    Nathan Getty
    Nathan Getty

    Listing agent Nathan Getty License #OR201256489

    Listing office Macadam Forbes

    Listing date Oct 10, 2024

    Source Crexi

    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 Macadam Forbes

    HighLights

    • High 9.3% Cap Rate offering a strong return on investment.
    • Fully leased to cannabis industry tenants with long‑term commitments, renewal options, and NNN leases.
    • Extensively redeveloped and upgraded 65,597 SF facility with significant infrastructure improvements (heavy electrical, paved parking, roofing, access control, etc.).
    • Prime location in the Willamette Valley with easy access to I‑5, Hwy 22, and Hwy 99 West.
    • Favorable zoning in Salem suitable for cannabis production, processing, and distribution.
    • Additional income potential from accessory building and gravel lot rentals.

    Overview

    This commercial real estate asset offers an investment opportunity within the cannabis industry. The property spans 65,597 square feet and has been redeveloped over the past nine years into a modern, upgraded facility. It houses cannabis industry tenants committed long-term, with many having secured renewal options and contributed to tenant improvements. These tenants operate as NNN lessees and are sub-metered for electrical use. The property features paved parking, stormwater improvements, fencing, heavy electrical, lighting, membrane roofing, and access control. All tenants hold the required permits for cannabis production, processing, or distribution, and comply with state and city regulations. The property owners have maintained positive relationships with the neighborhood association, city planning, and building departments. Situated on 3.1 acres, the facility includes an additional building and a gravel lot. The accessory building is leased to a contractor on a month-to-month basis for storage, while a portion of the gravel lot is rented out for fleet parking, generating supplementary income and offering potential for further development. Located centrally in the Willamette Valley, the property benefits from easy access to I-5, Hwy 22, and Hwy 99 West. The zoning in Salem enhances its appeal for cannabis-related activities. With a 9.3% cap rate, this asset presents a compelling investment opportunity, offering growth potential and a return on investment for those looking to capitalize on the expanding cannabis market. The property provides close proximity to I-5, providing easy access for businesses seeking convenient transportation links.
    Property Profile Location Intelligence

    Current Use by Public Records

    Pharmers Market Salem Big Box & Wholesale Store The American Dumpster Rental ... General Contractor

    Suggested Use

    Law Firm Real Estate Agency Restaurant Spa & Massage Center Dental Office Hair Salon Nail Salon Gym & Fitness Center Building Supply Daycare Center

    Zoning and permitted uses should be independently verified with local authorities.

    Location Insight

    • Map
    • Local Demand
    City
    Salem
    County
    Marion
    State
    Oregon
    Longitude
    -123.0127229
    Latitude
    44.9387686

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    FAQs

    What type of property is this?
    Cannabis property - Modern, fully upgraded cannabis facility with long-term tenants in Salem.
    Where is this cannabis property located?
    The property is located at 560 21st St SE Salem, OR.
    What is the asking price?
    The asking price for this property is $7,300,000.
    What are key features of this property?
    This property features: High 9.3% Cap Rate offering a strong return on investment.; Fully leased to cannabis industry tenants with long‑term commitments, renewal options, and NNN leases.; Extensively redeveloped and upgraded 65,597 SF facility with significant infrastructure improvements (heavy electrical, paved parking, roofing, access control, etc.).
    (503) 227-2500 Call to check price and availability
    We can help!
    Contact for Pricing
    Please call us for current price
    and status of this listing Nathan Getty
    Nathan Getty
    Real Estate License ID: OR201256489
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

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