RE Building
STABILIZED HEALTHCARE INVESTMENT IN WEST SALEM, OR
Marketing description
The Offering presents the opportunity to acquire a stabilized healthcare investment in the affluent and growing West Salem market. Delivered in 2019 by CBTWO Architects, the RE Building was constructed to a top-of-the-line finish, which includes photovoltaic (PV) panels that lower energy consumption and increase operational efficiencies for tenants. The RE Building benefits from its strategic positioning to Oregon Route 22, which connects West Salem to downtown Salem. Additionally, the Property is a 5-minute drive from the Salem Hospital, which recently completed a 200,000+ SF & 150 ICU bed expansion totaling $245M.
The RE Building is 98% leased with a WALT of 5.42 years (as of 11/1/26). All tenants have annual rent increases, with the anchor tenant (87% of GLA) operating under a true NNN lease, providing a hedge to increasing inflation. Salem’s medical office vacancy rate of 3.4% further strengthens the investment’s long-term stability.
The Property is anchored by Therapy Partners Group, who operates 140+ practice locations throughout 7 U.S. states. Their state-of-the-art buildout includes two professional-grade underwater treadmills and a full indoor track, which are utilized by Division 1 collegiate programs and other major sports teams. The tenant recently executed an early lease extension through September 2032, highlighting their long-term commitment to the RE Building.
Investment highlights
• The property is anchored by Therapy Partners Group, who operates 140+ practice locations throughout 7 U.S. states and recently executed an early lease extension through September 2032.
• Stabilized medical office investment located in a tight submarket with a 3.4% vacancy rate for medical office buildings.
• The property is just down the road from the Salem Hospital, a 644-bed acute care hospital and Level II Trauma Center. The hospital recently completed a 200,000+ SF & 150 ICU bed expansion representing a $245 million investment.
• The building benefits from photovoltaic (PV) panels, reducing energy consumption, increasing operational efficiencies, and contributing to eco-friendly initiatives.
• High-quality and well-maintained building constructed in 2019 by CBTWO Architects.
• All leases feature 3% annual increases, providing a hedge against inflation. Therapy Partners Group (87% of GLA) operates under a NNN lease, further protecting ownership from inflation.
• Highly exposed location with visibility from the main commuter highway connecting West Salem to downtown.
• Located in the affluent, high-growth submarket of West Salem, with average household incomes exceeding $131,000.
• Potential seller financing available. Contact Northmarq for more information.
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