For-profit, nonprofit partnership solves community riddles

After seven years of vacancy, SVN Real Estate secured a buyer that will transform the Statesman Journal Building, thanks to innovative partnerships between for-profit and nonprofit sectors at an impressive scale.

“This building didn’t fit anybody’s needs,” said Nick Williams, Senior Adviser at SVN Real Estate. Williams and Curt Arthur took on the project as co-listers in 2020 knowing it would be costly. “We knew that the ratio of hours worked on the project and the amount we were paid probably wasn’t going to be consistent with other projects we work on,” Williams said. “But it was important to the community, so that was why we fought so hard.” 

The building sold on July 16th for $1.98 million to StoreIT, a Beaverton-based self-storage company with a history of giving new life to abandoned properties. The City of Salem’s code for the central business district doesn’t allow for storage facilities at street level, so StoreIT will occupy the basement that runs the length of the building. They developed a plan to master lease the main floor to the Salem Family YMCA, who will use part of the main floor and sublease the rest to a number of other nonprofits. Wayde Elliott, CEO of StoreIT, was all for this partnership. “When we talked with him about the potential of partnering with the YMCA to do something on the ground floor, he picked up the phone right away,” Williams said. “He loved the idea of solving a community need.”

Stakeholders coined the project the “Block of Humanity.” The name, “Block of Humanity,” came from a conversation between Sinatra and Mark Bulgin, Executive Director at Isaac’s Room. “We said, imagine if this concept worked. It’d be this block of humanity,” Sinatra said. The services provided will accomplish a wide variety of humanitarian efforts, from convenient storage space for people living in tight quarters to support services for people experiencing homelessness.

The Statesman Journal Building was developed in three phases. The YMCA plans to occupy the southernmost section, using it as assembly space for family programming events including employment fairs, skate nights, pickleball and more. They also hope to develop a childcare center, whether offered through the YMCA or another provider.

Other nonprofits will fill the rest of the main floor. These organizations may use the facility as their base location, an outreach center, satellite offices or a shared flex space.

“It would be this one-stop shop to make it efficient and effective in providing services that both meet social needs, but also provide springboards of opportunity at the same time,” Sinatra said. The Block of Humanity features a prime location, neighboring the YMCA, Ike Box, Courtney Place veteran housing and the bus station.

Sinatra said the concept has been in the works for several years now. “I’m impressed that the partners are still at the table and excited, and the partnerships keep growing,” Sinatra said. The YMCA is working with 35 nonprofits who expressed interest in utilizing the space. Sinatra hopes the facility will open for operation in the fall of 2025.

The complex planning and development process for the Statesman Journal Building has proved an incredible success—both for business and social services. “It’s pretty impressive, our community coming together for something like this,” Sinatra said.