Home Commercial The RMR Group Sells 233,000 SQFT Office Building in Salem, Ore. to...

The RMR Group Sells 233,000 SQFT Office Building in Salem, Ore. to Boyd Watterson in $34MM Deal

The RMR Group, Boyd Watterson, CBRE Capital Markets, Salem, Portland, Capitol City Business Center

By Kate Snyder

With multiple recent transactions recorded in Washington and Oregon, The RMR Group had a busy month in the Pacific Northwest.

Along with an office property in Everett, Wash., earlier this month, RMR made a second deal that same day to sell a building in North Salem, Ore., also to Boyd Watterson.

The one-story, 233,358 square foot Salem property sold for $34 million, or about $145 per square foot, according to information from CBRE Capital Markets, which brokered the sale. The property is located at 4600 25th Avenue Northeast, Salem, and with frontage on the I-5 Freeway, offers access to Downtown Salem and the Portland metro area.

Capitol City Business Center is a multi-tenant, government-leased office building, as described in marketing documents, and is 87 percent occupied. Current leases include a number of support operations for the Oregon Department of Human Services, Oregon Employment Department and the Oregon Department of Justice.

The property is also located in the same general area as several state and public organizations, including Oregon Occupational Health and Safety, Vocational Rehabilitation Department, and Oregon Department of Human Services. According to Google Maps, some of the property’s closest neighbors include Roy Houck Construction on 22nd Avenue NE to the west and residential properties to the south.

The building was constructed in 1957 and renovated in 2011 and 2019, according to marketing information. The facility includes an on-site cafeteria, and recent renovations were made to the lobby, restrooms, common areas, heating and air conditioning systems, parking and landscaping. The property also includes 1,128 parking spaces.

In total, the site area is listed at 29.67 acres. RMR put the property up for sale last year, according to The Registry’s previous reporting.

Both The RMR Group and an entity affiliated with Boyd Watterson were involved in another sale of an office facility in Everett earlier this month. That two-building, 111,908 square foot office property sold for $31.5 million, or about $281 per square foot.

The RMR Group is based in Newton, Mass., and currently owns 2,100 properties throughout the United States as well as in Canada and Puerto Rico. Other recent activity by the firm includes the redevelopment of a three-building mixed-use development with more than 300,000 square feet located in Seattle that was announced earlier this year, according to previous reporting by The Registry.

Boyd Watterson is an Ohio-based investment firm formed in 2009 that manages billions in gross real estate assets, according to the company’s website.