SPC Seizes on Rare Investment Opportunity for E-commerce Last-Mile Facility

Reich Brothers recently sold a 129,850-square-foot freestanding distribution building on nearly 20 acres with a 10-acre parking facility in Salem, OR. Built in 2009 and completely renovated in 2019, the single-tenant facility sold to SPC Acquisition Company LLC for $28.25 million.

Jeff Chiate, Jeffrey Cole, Bryce Aberg, Ed Hernandez, Mike Adey and Zach Harman of Cushman & Wakefield’s national industrial advisory group represented the seller in the transaction. The firm’s Jeff Morgan, Aaron Watt and Keegan Clay also provided market leasing advisory.

“This was a rare investment opportunity consisting of a critical e-commerce last mile facility on an abundant site with a high credit tenant, and that is positioned in one of the Pacific Northwest’s strongest industrial submarkets,” said Aberg. “Additionally, the state-of-the-art project is optimally located just a few miles from Interstate 5, providing ideal access to the residential population in the immediate area.”

The property is 100 percent leased to a Fortune 100 e-commerce company. Located in the heart of the Willamette Valley at 5475 Gaffin Rd., 45 miles south of Portland, the property is positioned among other corporate occupiers. The project is in the Salem Business Campus, formerly known as the Salem Renewable Energy & Technology Center, a 48-acre development.

“The industrial sector has remained among the most attractive asset classes in commercial real estate for investors, given the ongoing robust demand, as it is outpacing supply needs across the country,” said Chiate. “The first half of 2021 reported record-setting statistics for the U.S., with second quarter 2021 absorbing the most space in a single quarter that Cushman & Wakefield has ever tracked. We expect 2021 to be another strong year overall in terms of new leasing and therefore sales activity.”