offering memorandum...total population 9,858 107,270 193,908 2000 census total population 9,507...

*recommended dimensions: 6” x 4” (horizontal version), 200 DPI or higher

*recommended dimensions: 6” x 4”

(horizontal version),

200 DPI or higher

Steve Broker Steve Broker John Agent John Agent

Executive Vice President Investments First Vice President Investments Vice President Investments Vice President Investments

Palo Alto Office Sacramento/Reno Office Palo Alto Office Palo Alto Office

Tel: (650) 391-1774 Tel: (916) 724-1400 Tel: (650) 391-1796 Tel: (650) 391-1797

Fax: (650) 391-1715 Fax: (916) 724-1410 Fax: (650) 391-1715 Fax: (650) 391-1715

[email protected] [email protected] [email protected] [email protected]

License: CA 01234567 License: CA 01234567NV 01234

License: CA 01234567 License: CA 01234567

PINE ST WATERFRONT OPPORTUNITY LAND102 Pine St NE • Salem, OR 97301

OFFERING MEMORANDUM

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and

should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified

information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due

diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the

future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or

asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any

tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be

reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these

matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to

verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or

name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,

service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

PINE ST WATERFRONT OPPORTUNITY LAND

Salem, OR

ACT ID Z0210487

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INVESTMENT

OVERVIEW

PROPERTY OVERVIEW


PROPERTY OVERVIEW

Marcus & Millichap, as the exclusive advisor, is pleased to present the opportunity to acquire 102 Pine Street SE, Salem, Oregon. The subject

property is a riverfront, development ready set of eight lots located within a tax advantaged Opportunity Zone. The property is located on the

western bank of the Highland Neighborhood, just minutes from downtown Salem, local retail destinations, parks, schools, and the Broadway at

Pine Transit Station.

102 Pine Street is located in an Opportunity Zone, providing potential tax incentives for developing and holding the property. These potential

incentives include deferral of capital gains tax, increase in the tax basis of current realized capital gains, and the ability to pay zero capital gains

on appreciation of the subject property.

The property, approximately 64,684 square feet, is zoned Industrial Commercial, with a Class 2 Greenway Development Permit, Class 2 Zoning

Adjustment, and Conditional Use for eight duplexes to be developed, for a total of 16 residential units. The flexible Industrial Commercial zoning

allows for many potential uses, including residential, retail, office, industrial, and others. The property line starts at the low water mark in the river,

allowing construction to extend out closer to the river than is typically permitted, providing a unique opportunity for riverfront residence

development.

This is an opportunity to develop an in-demand riverfront center in the heart of Salem with great potential returns and tax savings.

PROPERTY OVERVIEW

1.48 Acres of IC/Residential Zoned Land

Close proximity to Downtown, Retail Destinations, Parks,

Schools, and the Broadway @ Pine Transit Station

Utilities On-Site, Shovel Ready

Low 3.1% Highland Submarket Vacancy

Riverfront Development Opportunity

Flexible IC Zoning Allows for a Plethora of Uses

Located in a Designated Opportunity Zone

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EXECUTIVE SUMMARY

OFFERING SUMMARY

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OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES *

Onity Inc 22,000

Salem Health 4,177

Norpac Foods Inc 4,040

Oregon State Hospital Purch 1,350

Oregon State Hospital 1,203

Administration Office 1,200

City of Salem 1,024

Public Welfare 1,000

State Farm Insurance 949

Communications Office 900

Oregon Department of Revenue 804

Ore Dept Consumer and Bus Svcs

800

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2017 Estimate Pop 10,564 114,686 206,349

2010 Census Pop 9,858 107,270 193,908

2017 Estimate HH 4,198 41,485 75,323

2010 Census HH 3,923 39,041 71,210

Median HH Income $34,436 $42,799 $48,020

Per Capita Income $17,890 $22,063 $23,715

Average HH Income $43,959 $58,810 $63,601

* # of Employees based on 5 mile radius

Offering Summary

Offering Price $610,000

Lot Size SF 64,684

Lot Size AC 1.48

Land Price/SF $9.43

Land Price/AC $412,162

Number of Parcels 2 Tax Parcels – 8 Lots

Zoning IC with Duplex Conditional Use

APNs 073W15DA05000, 073W15DA05100

Tax 2018-2019 $9,249.76

Frontage 260’ Pine St NE, 200’ Front St NE

Topography Paved lot with Sloped River Bank

Services Utilities at site including on-site storm, sewer, and water

Adjacent Development Retail, Office, Commercial


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77


88


99


1010

Marcus & Millichap closes

more transactions than any

other brokerage firm.

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PROPERTY PHOTO

AERIAL PHOTO


12

LOCAL MAP


13

REGIONAL MAP


14

PARCEL MAP


15

ZONING MAP


16


17

MARKET

COMPARABLES


SALES COMPARABLES MAP

18

PINE ST WATERFRONT OPPORTUNITY

LAND

(SUBJECT)

4165 Lancaster Dr NE

4345 Sunnyside Rd SE

Lancaster Dr SE

ON MARKET COMPARABLES

1

2

3

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PROPERTY NAMEPINE ST WATERFRONT OPPORTUNITY LAND

SALES COMPARABLES

Avg. $9.35

$0.00

$1.50

$3.00

$4.50

$6.00

$7.50

$9.00

$10.50

$12.00

$13.50

$15.00

Pine St

Waterfront

Opportunity

Land

4165

Lancaster

Dr NE

4345

Sunnyside

Rd SE

Lancaster

Dr SE

Average Price Per Square Foot

Avg. $407,183

$0

$60,000

$120,000

$180,000

$240,000

$300,000

$360,000

$420,000

$480,000

$540,000

$600,000

Pine St

Waterfront

Opportunity

Land

4165

Lancaster

Dr NE

4345

Sunnyside

Rd SE

Lancaster

Dr SE

Average Price Per Acre

ON MARKET COMPARABLES ON MARKET COMPS AVG

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


20

ON MARKET

COMPARABLES

Asking Price $540,000

Down Payment $540,000

Down Payment % 100%

Price/SF $9.68

Lot Size (Acres) 1.28 acre(s)

Price/Acre $421,873


102 Pine St NE, Salem, OR, 97301

ENTITLED: NO | PERMIT READY: YES

1

On Market

Days On Market 15

List Price $289,900

Zoning RM

Density 1500

Price/SF $13.31

Lot Size (Acres) .5

Price/Acre $579,800

Lot Dimensions 180 X 155

4165 LANCASTER DR NE4165 Lancaster Dr NE, Salem, OR, 97305


2

On Market

List Price $249,000

Zoning CO

Density 1500

Price/SF $5.55

Lot Size (Acres) 1.03

Price/Acre $241,748


4345 SUNNYSIDE RD SE4345 Sunnyside Rd SE, Salem, OR, 97302


PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


21

ON MARKET

COMPARABLES

3

On Market

List Price $160,000

Zoning RA

Density 1500

Price/SF $9.18

Lot Size (Acres) .4

Price/Acre $400,000


LANCASTER DR SELancaster Dr SE, Salem, OR, 97312



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MARKET

OVERVIEW

MARKET OVERVIEW

OVERVIEW

SALEM, OR

Oregon’s state government is located in Salem, providing a stabilizing

influence on the metro economy. The market is composed of Marion and

Polk counties. The area is also known for its lumber and agriculture

industries, which are supported by lush forests, lakes and rivers. Nearby

wildlife refuges and state parks provide an abundance of recreational

activities. Salem is home to several postsecondary institutions, including

one of the oldest universities in the west, Willamette University.

DEMOGRAPHICS

1

ECONOMY

METRO HIGHLIGHTS

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau


LUMBER PRODUCTION

Several forests are located near the area, benefiting Salem’s strong lumber

industry, which supports thousands of workers.

DISTRIBUTION CENTER

With its location halfway between Portland and Eugene, the market serves as a

prime distribution hub for the region.

AGRICULTURAL PRODUCTION

The Willamette River supports a strong agriculture industry in Salem, which

employs tens of thousands of individuals.

Home Depot, FedEx and Henningsen Cold each have large distribution centers in Salem. Wilco, an

agriculture supply firm, also has a distribution facility in the area.

Agriculture is a dominant part of the Salem metro’s economy. The area’s primary crops include

wheat and hops, but several fruits including strawberries and prunes are grown here. Major

agriculture employers include Truitt Family Foods, Diamond Foods and Wilmette Valley Fruit.

Other segments important to the local economy include government, aerospace, manufacturing and

technology. Additionally, several colleges and universities in the region support the region’s growing

need for a skilled workforce.

418K

2017POPULATION:

150K

2017HOUSEHOLDS:

36.5

2017MEDIAN AGE:

$52,500

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

37.8U.S. Median:

$56,3005.9%

Growth2017-2022*:

3.2%

Growth2017-2022*:

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2017 Experian

Created on October 2018

POPULATION 1 Miles 3 Miles 5 Miles

2022 Projection

Total Population 10,678 117,384 210,982

2017 Estimate


2010 Census


2000 Census


Daytime Population

2017 Estimate 13,143 147,526 224,024

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2022 Projection

Total Households 4,372 43,483 78,946

2017 Estimate


Average (Mean) Household Size 2.43 2.58 2.61

2010 Census


2000 Census


HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2017 Estimate

$250,000 or More 0.34% 1.19% 1.29%

$200,000 - $249,999 0.19% 0.81% 0.94%

$150,000 - $199,999 0.44% 2.80% 3.27%

$125,000 - $149,999 1.53% 3.41% 3.67%

$100,000 - $124,999 4.35% 6.35% 7.07%

$75,000 - $99,999 8.33% 9.93% 11.97%

$50,000 - $74,999 18.09% 18.73% 19.99%

$35,000 - $49,999 16.00% 15.26% 15.19%

$25,000 - $34,999 12.67% 12.29% 11.57%

$15,000 - $24,999 14.93% 12.40% 11.55%

Under $15,000 23.14% 16.83% 13.49%

Average Household Income $43,959 $58,810 $63,601

Median Household Income $34,436 $42,799 $48,020

Per Capita Income $17,890 $22,063 $23,715

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PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS


Created October 2018

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population by Age

0 to 4 Years 8.46% 7.36% 7.06%

5 to 14 Years 13.86% 14.18% 14.27%

15 to 17 Years 3.64% 4.04% 4.20%

18 to 19 Years 2.11% 3.03% 2.73%

20 to 24 Years 9.10% 8.28% 7.38%

25 to 29 Years 10.44% 8.07% 7.34%

30 to 34 Years 9.15% 7.60% 7.13%

35 to 39 Years 6.88% 6.76% 6.62%

40 to 49 Years 11.68% 12.16% 12.08%

50 to 59 Years 11.66% 11.75% 12.01%

60 to 64 Years 4.06% 5.21% 5.67%

65 to 69 Years 3.16% 3.92% 4.56%

70 to 74 Years 1.93% 2.72% 3.22%

75 to 79 Years 1.42% 1.89% 2.25%

80 to 84 Years 1.16% 1.37% 1.60%

Age 85+ 1.26% 1.65% 1.90%

Median Age 31.22 33.27 34.93

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population 25+ by Education Level

2017 Estimate Population Age 25+ 6,637 72,378 132,823

Elementary (0-8) 11.78% 7.58% 6.33%

Some High School (9-11) 9.46% 9.28% 8.54%

High School Graduate (12) 26.63% 26.83% 26.72%

Some College (13-15) 24.94% 24.92% 26.18%

Associate Degree Only 6.53% 7.84% 7.93%

Bachelors Degree Only 13.84% 13.88% 14.39%

Graduate Degree 4.51% 7.99% 8.42%

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DEMOGRAPHICS

26

Income

In 2017, the median household income for your selected geography is

$34,436, compare this to the US average which is currently $56,286.

The median household income for your area has changed by 23.97%

since 2000. It is estimated that the median household income in your

area will be $39,427 five years from now, which represents a change

of 14.49% from the current year.

The current year per capita income in your area is $17,890, compare

this to the US average, which is $30,982. The current year average

household income in your area is $43,959, compare this to the US

average which is $81,217.

Population

In 2017, the population in your selected geography is 10,564. The

population has changed by 11.12% since 2000. It is estimated that

the population in your area will be 10,678.00 five years from now,

which represents a change of 1.08% from the current year. The

current population is 49.37% male and 50.63% female. The median

age of the population in your area is 31.22, compare this to the US

average which is 37.83. The population density in your area is

3,353.79 people per square mile.

Households

There are currently 4,198 households in your selected geography. The

number of households has changed by 16.32% since 2000. It is

estimated that the number of households in your area will be 4,372

five years from now, which represents a change of 4.14% from the

current year. The average household size in your area is 2.43 persons.

Employment

In 2017, there are 7,898 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

44.27% of employees are employed in white-collar occupations in

this geography, and 55.29% are employed in blue-collar occupations.

In 2017, unemployment in this area is 8.79%. In 2000, the average

time traveled to work was 25.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

71.76% White, 1.37% Black, 1.25% Native American and 1.36%

Asian/Pacific Islander. Compare these to US averages which are:

70.42% White, 12.85% Black, 0.19% Native American and 5.53%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 32.02% of the current year

population in your selected area. Compare this to the US average of

17.88%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $149,059 in 2017,

compare this to the US average of $193,953. In 2000, there were

1,220 owner occupied housing units in your area and there were

2,389 renter occupied housing units in your area. The median rent at

the time was $454.


DEMOGRAPHICS

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TRAFFIC COUNT

YEAR COUNT

2015 15,800

2015 14,100

2010 3,200

MARKETING PLAN

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LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX


PRICING AND VALUATION MATRIX


28

MARKET OVERVIEW


28

Subject Property

offering memorandum...total population 9,858 107,270 193,908 2000 census total population 9,507...

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