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RE Building 1025 2nd St NW 9,822 SF 98% Leased Office Building Salem, OR 97304 $4,410,000 ($448.99/SF) 6.99% Cap Rate
Investment Highlights
- Anchored by Therapy Partners Group, with a lease through September 2032.
- High-quality and well-maintained building constructed in 2019 by CBTWO Architects.
- Located in the affluent, high-growth submarket of West Salem, with average household incomes exceeding $131,000.
- Stabilized medical office investment located in a tight submarket with a 3.4% vacancy rate for medical office buildings.
- All leases feature 3% annual rent increases, with Therapy Partners Group (87% of GLA) on a NNN lease, providing inflation protection.
- Photovoltaic (PV) panels enhance operating efficiency, lower energy costs, and support sustainability efforts.
Executive Summary
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.
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.
Property Facts
Sale Type
Investment NNN
Sale Condition
Business Value Included
Property Type
Office
Property Subtype
Medical
Building Size
9,822 SF
Building Class
B
Year Built
2019
Price
$4,410,000
Price Per SF
$448.99
Cap Rate
6.99%
NOI
$308,430
Percent Leased
98%
Tenancy
Multiple
Building Height
1 Story
Typical Floor Size
9,822 SF
Building FAR
0.35
Lot Size
0.65 AC
Opportunity Zone
Yes
Zoning
CO-(Commercial Office) - CO-Commercial office zoned in Salem.
Amenities
- Fitness Center
- Signage
- Wheelchair Accessible
- Storage Space
- Monument Signage
- Air Conditioning
- Fiber Optic Internet
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Moderately walkable
60/100
Exceptionally drivable
90/100
Limited public transit
30/100
Moderately bikeable
60/100
Property Taxes
| Parcel Number | 258911 | Improvements Assessment | $1,675,540 |
| Land Assessment | $63,650 | Total Assessment | $1,739,190 |
Property Taxes
Parcel Number
258911
Land Assessment
$63,650
Improvements Assessment
$1,675,540
Total Assessment
$1,739,190
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Contact the Sale Advisor
RE Building | 1025 2nd St NW