Local owners acquire Salem, OR’s downtown mall Salem Center, name JLL as leasing and management team in major revitalization effort

Salem Center has been acquired by three local Salem investors planning to re-energize the iconic 3.9 acre downtown retail property. Acquiring it under the entity name OGSC2, LLC, partners Kelly McDonald, Patrick Carney and Mark Shipman will bring a combination of local experience and national resources including naming JLL for property management and leasing services. A local lender also helped fund the acquisition from an interim receiver that had held the property after a 2018 real estate-owned (REO) bankruptcy procedure. Terms were undisclosed.

“We’re excited to establish local ownership of Salem Center and add new energy to this vibrant, human gathering place for greater Salem,” said Kelly McDonald of OGSC2. “We will further assess the needs of the community as we work to bring new tenants and develop a longer-term investment strategy.” McDonald, Carney and Shipman each bring complementary experience in real estate development, investment financing and land use practices.

The downtown shopping center is located at 401 Center Street NE in historic central Salem. It features a variety of national, regional and local restaurants and shops including Macy’s, Kohl’s, Ross Dress for Less, Bath & Body Works, American Eagle Outfitters, Victoria’s Secret, Zumiez, Cinebarre Salem 7 theatre and others.

"I’m excited to partner with the new ownership group,” said Rian Fechtel, General Manager for JLL at Salem Center. “Their combined expertise and vision for what Salem Center can be is refreshing and I look forward to helping realize that vision. Keeping the JLL management platform in place solidifies the owners’ desire for best-in-class management while ensuring a truly local focus on the future of Salem Center.”

Added McDonald, “When the Salem Center opportunity arose, we saw the chance to help transform this place of commerce and community. We are equally excited to work with the City and other property owners and organizations engaged in the current transformation effort that is rebuilding Salem’s downtown core.”

Salem has seen several announcements of downtown revitalization including the major housing/mixed-use Block 50 project by the City of Salem, Edlen & Co. and deChase Miksis, development of the 157-unit Rivenwood apartments by S.D. Deacon, plans by S.D. Deacon for additional new housing south of Salem Center at 280 Liberty Street NE and at 277 High Street NE and Clutch Industries’ revitalization of the Liberty Plaza retail center at 285 Liberty Street NE, now known as the FORGE.

Said Carney, "Salem Center is a unique investment opportunity that found us. We were not looking to buy a mall, but the interim receiver reached out to us and asked us to submit an offer and amazingly it all came together. We are truly blessed and really excited for this opportunity. The property is centrally located in a prosperous and growing community where people can come to live, work, and play and where both retailers and restaurants can thrive.”

“The City of Salem welcomes OGSC2, LLC, and looks forward to the prospect of enhancing the retail core and commercial landscape of the area,” said Sheri Wahrgren, City of Salem, Community Planning and Development Department.

The new owners have incentives for local businesses that may want to consider their new designated temporary pop-up space. For information about this and general Salem Center Mall information including events and a complete list of stores and restaurants, visit SalemCenter.com, follow Facebook and Instagram or call the mall office at 503-364-0495.

About Salem Center

Salem Center is an enclosed shopping destination located in downtown Salem, Oregon. Anchored by Macy’s and Kohl’s, the Center offers nearly 60 retailers, eateries and Cinebarre Salem 7 theatre. Amenities include covered parking, children’s play space and stroller rentals. The Center is open Monday – Thursday, 11 am – 7 pm and Friday - Saturday 10 am – 8 pm, and Sunday 11 am-6 pm and is located at 401 Center Street NE, Salem, OR., 97301. For the latest information about Salem Center including events and a complete list of stores and restaurants, visit SalemCenter.com or follow Facebook and Instagram.