Listed by Tradition Real Estate Partners
$5,585,000
Stabilized Asset with Strong Fundamentals
Details
Property Type Office
Sub Type Executive Office
Square Footage 18,413
Units 15
Cap Rate 6.76%
NOI $377,330
Occupancy 92.9%
Tenancy Multi
Lease Type NNN
Price per SqFt $303
Class B
Year Built 1999
Stories 2
Acreage 1.000
Zoning CR
Parking Spaces 4.50 per 1,000 sq ft
Investment Type Stabilized
Office | 6.76% CAP | 18,413 SqFt
Marketing description
New to Market.
Situated at 675 Orchard Heights Road NW in Salem, Oregon, Orchard West is an 18,413 square foot, two-story multi-tenant office building on a full acre of land. Recently renovated to a high standard, the property features modern finishes and a 4.5:1,000 parking ratio, ensuring ample on-site parking for tenants and visitors. Zoned Flexible Retail Commercial by the City of Salem, it offers versatility for office, retail, or mixed-use applications. Currently 92.9% occupied, the building generates stable cash flow through a diversified tenant mix, all on triple-net (NNN) leases, minimizing owner expenses to approximately $10,000 annually.
Financial Performance
The property delivers a 2024 net operating income (NOI) of $377,330.53, supported by an effective gross income of $492,666.00. With most tenants committed to long-term leases, Orchard West provides predictable revenue streams and potential for value-add through the remaining vacancy.
Tenant Profile
Anchored by established professionals, the lower level features a prominent dental practice, while the upper level is home to a longstanding real estate firm and property management company. This mix of service-oriented tenants underscores the building's appeal in a professional hub, fostering tenant retention and operational synergy.
West Salem, the northwest quadrant of Oregon's capital city, stands out as a serene yet accessible enclave, separated from downtown Salem by the Willamette River but connected via efficient bridges. Known for its upscale residential communities and proximity to natural attractions, the area blends suburban tranquility with urban convenience. Residents and businesses benefit from easy access to the Willamette Valley's renowned wine country, outdoor recreation opportunities like hiking in nearby state parks, and a vibrant local economy driven by government, agriculture, healthcare, and manufacturing sectors. The neighborhood's appeal is enhanced by its central location—less than an hour from Portland and the Pacific Coast—making it ideal for professionals seeking a balanced lifestyle. West Salem's historic charm, combined with modern amenities like boutique dining and cultural venues, positions it as Salem's premier district for growth and investment.
Investment highlights
- High Occupancy with Anchor Stability: 92.9% leased to creditworthy tenants on long-term NNN agreements, anchoring cash flow reliability.
- Minimal Owner Overhead: Annual operating expenses capped at ~$10,000, maximizing NOI efficiency.
- Prime Affluent Locale: Positioned in West Salem, Salem's highest-income neighborhood, with median household incomes exceeding $90,000 and strong educational attainment.
- Versatile Zoning Advantage: Flexible Retail Commercial designation allows for adaptive reuse, enhancing future-proofing.
- Ample Amenities and Accessibility: 4.5 parking ratio on a full acre, plus proximity to wine country, state capitol, and major highways for seamless connectivity.
- Proven Financial Metrics: 2024 NOI of $377,330.53 on $492,666 effective gross income, offering immediate yield with upside potential.
Listing Contacts
Listed by Tradition Real Estate Partners
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$377,330.00
$31,444.17/mo
Valuation Metrics
0
DSCR
6.76%
Cap Rate
6.76%
ROI
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