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SALEM, OR-Spirit Mountain Development Corp. and Paragon Development Corp. have accepted a purchase offer for the 61,000-sf strip mall in South Salem they placed under Chapter 11 bankruptcy protection several weeks ago to prevent Key Bank from foreclosing on the property at 4665 Commercial St. S.

The asking price for the property is $9.6 million. The offered amount is confidential and other, equal or higher offers may still come in and supercede it, according to listing broker Bo Rushing of Salem-based Rushing Commercial Real Estate, which brokered the property sale that led to the development, coordinated development and handled the leasing. No court date has yet been set to obtain approvals from the court and creditors, Rushing tells GlobeSt.com.

All tenants are signed on for five- to 10-year lease terms, says Rushing. One 3,000-sf space is currently available. Triple-net asking rents are $16- to $18-per sf per year. Based on current rents and the asking price, the buyer’s capitalization rate would be 9.3%, says Rushing.

The built-out, 4.7-acre property is anchored by Hollywood Video and the new Salem Fitness Center. Salem Fitness Center opened on April 10 in the space of the former tenant Apollo Fitness Center. Rushing wouldn’t speculate on the cause of the delinquent loan payments that prompted Key Bank to begin foreclosure proceedings, but one common problems is deliquent rent payments from tenants.

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