Riverfront Redevelopment Site For
For Sale
Contact for pricing
110 Division St NE, Salem, OR 97301
1.63 acre riverfront redevelopment site with existing industrial building.
Property Size11,923 SF
Lot Size1.63 Acres
Price / SF$226.45
Days on Market2326
Property Features for 110 Division St NE
General Information
Standard status
Active
Size
11,923 SF
Lot size
1.63 Acres
Property subtype
Industrial
Zoning
MU-R
Lease Type
NNN
Building Details
Buildings
1
Listing Agency:
Gall Real Estate Services, LLC
(503) 363-6051
Listed By:
Jennifer Hand · License #OR 960600193
Source:
Crexi
Added: Apr 9, 2020
Changed: Aug 21
Last Checked: May 19 at 8:29PM
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 Gall Real Estate Services, LLC
Investment Insights
Based on property information with market context.
This is a redevelopment site featuring an existing 11,923 square foot industrial building. The 1.63-acre riverfront property is located just north of downtown with convenient access to I-5 via Salem Parkway. The building includes multiple cranes, grade-level doors, heavy 3-phase power, and piped gas and air. On-site parking and truck turnaround are available. The zoning is Multiple Family High Rise Residential, with Riverfront High Density Residential Overlay and Willamette Greenway. The property currently generates income from an industrial user.
Key Highlights
- Tremendous redevelopment site on 1.63 acres of riverfront property.
- Zoned Multiple Family High Rise Residential, with Riverfront High Density Residential Overlay and Willamette Greenway.
- Existing 11,923 SF building provides current income from industrial user.
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
$114,175
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
4.23%
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%
$2,283,500
$2.3M
Cap Rate 7%
$1,631,071
$1.6M
Cap Rate 9%
$1,268,611
$1.3M
Market Conditions
NOI Build-Up for 11,923 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
$171.7K $14.40/SF
− Vacancy
−$8.6K −$0.72/SF
EGI
$163.1K $13.68/SF
− OpEx
−$48.9K −$4.10/SF
NOI
$114.2K $9.58/SF
Area
Salem, OR
Vacancy
5.00%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
30.00%
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%
$2,283,500
Cap Rate 7%
$1,631,071
Cap Rate 9%
$1,268,611
Alternative Uses
Best Use
Industrial
$1.63M
$1.43M – $1.90M
NOI $114,175 @ 7.0% cap · market cap 4.23%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.17M
$2.77M – $3.69M
NOI $221,596 @ 7.0% cap · market cap 8.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,991
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 Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Industrial property - 1.63 acre riverfront redevelopment site with existing industrial building.
Where is this industrial property located?
The property is located at 110 Division St NE Salem, OR.
What is the asking price?
The asking price for this property is $2,700,000.
What are key features of this property?
This property features: Tremendous redevelopment site on 1.63 acres of riverfront property.; Zoned Multiple Family High Rise Residential, with Riverfront High Density Residential Overlay and Willamette Greenway.; Existing 11,923 SF building provides current income from industrial user.
