21 Oaks Office Building Sold for $1,250,000
Commercial Real Estate Success Story
The Property
21 Oaks Professional Building is located at 525 Glen Creek Rd. NW in Salem, OR at the intersection of Wallace Rd NW. It is in close proximity to shopping, restaurants, and services. This three-level 14,870 square foot building was renovated in 2019. It has office space for 16 tenants.
Background
The seller purchased it in 2017 and invested over $340,000 in building improvements. Some of these renovations included a new roof, redesign of the landscaping, installation of selected new HVAC systems, interior upgrades, ADA ramp, sidewalks, siding, and signage. SVN Bluestone & Hockley advisor, Olesya Prokhorova, solidified and extended all of the leases prior to sale to stabilize the cashflow of the building. The property was put on the market in December of 2019 and had immediate multiple offers.
Opportunities and Challenges
This transaction was originally scheduled to close on March 26th, 2020, but as the pandemic crisis deepened, the lender became overwhelmed in dealing with PPP loans to businesses.
Even though none of the Tenants asked for rent deferrals, it still posed a great risk to the valuation of the building had any of the tenants stopped paying rent.
Solution and Outcome
Both parties decided to extend the closing to allow their lender to take a breath during the crisis. Even though it was the middle of a pandemic and the closing was extended, all parties were confident in continuing the transaction.
What made this deal work is that all the tenants continued to pay rent. This is a credit to the Commercial Property Managers at Bluestone & Hockley Real Estate Services.
What is exciting is we were able to close the sale during the pandemic! This transaction was made possible due to the close collaboration between the buyer, seller, SVN Brokers Jim Wierson and Olesya Prokhorova, Gabe Johansen with SMI Commercial and Pioneer Bank.
SVN Bluestone and Hockley Brokers (represented seller)
- Cliff Hockley: 503-459-4359
- Jim Wierson: 503-459-4376
- Olesya Prokhorova: 503-459-4347