Lancaster real estate deal would be among largest in city’s history

Lancaster Mall’s owners have put the landmark Salem property on the market.

After a series of renovations, the 36-year-old mall has attracted tenants such as Old Navy, Linens ‘N Things and Regal Cinemas. Now, its owners — a group backed by C.E. John Co. of Vancouver, Wash. — are poised to cash in on their investment.

The retail center is at 831 Lancaster Drive NE; other entities besides C.E. John also have an ownership stake in the 50-acre Lancaster site.

“Very few properties have that kind of significant value,” said Alex Rhoten, principal broker with Coldwell Banker Commercial Mountain West Real Estate LLC in Salem. If the entire mall property was sold, it would rank among the largest real estate deals in Salem’s history, he said.

It’s difficult to speculate on how new ownership might affect the mall, said Martin, who is with Coldwell Banker Commercial Mountain West Real Estate. The property already has a good mix of retailers, she said.

“Lancaster Mall is an icon for the city of Salem and for them to make huge modifications might backfire,” Martin said.

As for ballpark estimates of the property’s sale price, Martin said the value could be in the $100 million range.

In 1968, the PayLess drug store chain was the first tenant and landowner on the property. Montgomery Ward, which went bankrupt, once owned a store, auto center and parking lot at Lancaster.

Lancaster is a bit larger than Salem Center, which has about 640,000 square feet of space in the downtown area.

To the north, Keizer Station is expected to have about 678,000 square feet of buildings by this fall when new construction is completed, making it the largest mall in the Salem area.

About company:

Initially started in 1947, C.E. John Company focused primarily on construction in the residential housing market. As the company grew, it became increasingly involved in the development of commercial retail properties. In October of 1969, the C.E. John Development Company formed with the primary goal of becoming the leader in commercial real estate development in the Pacific Northwest.

By MICHAEL ROSE, Statesman Journal 

Tagged as: mall, property

 

 

 

 

USGBC - U.S. Green Building Council

HUD - U.S. Department of Housing and Urban Development

NAR - National Association of REALTOR

RealtyTrac

FHFA - Federal Housing Finance Agency

Freddie Mac

MBA - Mortgage Bankers Association