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A medical practice has purchased a chunk of The Meridian building’s commercial space, raising hopes that the mixed-use project near downtown Salem finally is on track.
Cascade Cardiology Real Estate LLC paid about $1.7 million for 9,936 square feet on The Meridian’s ground floor, according to a purchase agreement. Cascade Cardiology, a Salem physicians group, will use the space for a medical office. It’s taking about half the space designated for business in the building.
The Meridian, 777 Commercial St. SE, was one of several Salem condominium projects that hit snags when the economy faltered and the credit crunch stifled lending. The building’s finances are tied up in litigation. Earlier this year, a judge appointed a receiver to oversee The Meridian until the court case is resolved.
But people working on behalf of the receiver – Los Angeles-based Scouler & Company – say they are making progress.
“This sale to Cascade Cardiology is the ultimate catalyst for this project and the first significant signal of a turnaround,” said Lars Parkin, a Scouler & Company consultant.
“This is the type of movement we’ve been waiting for, and I think it’s going to continue,” said Mike Mosar, a Salem real-estate agent, who handled the sale to Cascade Cardiology.
The deal closed last month, said Mosar, who is with Coldwell Banker Mountain West Real Estate LLC.
By spring of next year, Cascade Cardiology will relocate its office at the Center for Outpatient Medicine on the Salem Hospital campus and move into The Meridian, Mosar said. Other medical office users have expressed an interest in The Meridian, he said.
The Meridian also has 89 residential condos, of which 36 are occupied.
Four of the residential condos have been sold, one sale is pending, and the remainder of the occupied units are leased, said Don Meyer, a real estate agent with Re/Max Equity Group in Salem.
Meyer, who is the listing agent for the residential untis, said price cuts have spurred interest in the condos.
Residential units on floors four, five and six – unfinished shells designed to be built out with custom finishes – are half of the original asking price in some instances.
One condo on the sixth floor that was priced at more than $1 million has been reduced to about $509,000, Meyer said. The price of one smaller unit has similarly been reduced to about $259,00.
In March 2009, The Meridian had its grand opening. The six-story building was constructed on the former site of the Oregon Capitol Inn. Dan Berrey was the project’s developer, as well as an investor.
This year, the primary lender on the project – First Citizens Bank & Trust Company – filed a lawsuit in U.S. District Court and threatened to foreclose. A federal judge in May signed an order that authorized a receiver to “manage, control and operate the collateral,” including all the unsold units in The Meridian.
There has been no foreclosure on the property, but Scouler & Company has taken over the building’s management.
Rose, Michael. “Mixed-use development ‘making progress.’” Statesman Journal 20 Dec. 2010: 1A, 4A
Cascade Cardiology has purchased 10,00 square feet of prime main level commercial space in the Meridian located at 777 Commercial St SE in Salem.
Buying commercial space rather than signing a long term lease makes great economic sense for some businesses.
This is a big vote of confidence for the Meridian project. The bank-controlled property has a team of professionals ready to make more deals and fill in the remaining space. Pricing has been discounted from the original asking price, making the Class-A Meridian building an attractive opportunity.
Lars Parkin of Scouler and Company based in New York, Los Angeles and Atlanta is now administrating all details between the bank, the courts and other representatives of the Meridian including Don Meyer of Re/Max Equity Group for residential purchases and Mike Mosar of Coldwell Banker Mountain West Real Estate.
“Mike Mosar deserves a great deal of credit for this transaction with Cascade Cardiology and the Meridian,” said Lars Parkin of Scouler and Company.
“Cascade Cardiology Purchases Commercial Space in Meridian.’” Salem Business Journal Dec. 2010: 9