SALEM — The former Truitt Brothers cannery is back on the market as a new filing seeks to keep key development approvals alive, adding another turn to one of Salem’s most closely watched riverfront redevelopment projects.
The roughly 13.66-acre property along Front Street NE has city approval for a mixed-use redevelopment with three six-story buildings containing 382 housing units, ground-floor commercial space, a food hall, winery building, market building, parking and pedestrian access along the Willamette River.
SilverSphere Capital had been under contract to acquire the property and move the redevelopment forward. The transaction did not close, and First Commercial Real Estate Services is marketing the riverfront site for $11.999 million.
Aaron Stickney, co-founder and managing partner of SilverSphere, told Salem Business Journal that the company will wait until after the November elections before deciding whether to pursue an investment of this size in Oregon.
Stickney said:
SilverSphere Capital is waiting until after the November elections to decide whether Oregon is a viable place to make an investment of this size. Current leadership runs our cities and the state like a nonprofit. They are supposed to act in the best interest of the citizens they serve, and that is not happening. They have a responsibility to be good stewards of the public assets they manage.
Oregon has tremendous assets in every city that are being underutilized. Portland has roughly 10.5 million square feet of vacant office space. In Salem, the city is targeting a ground lease on Lots 45 and 50 for $1 per year, when those sites should bring in thousands per month. Until we see better leadership, we do not see Oregon as a viable investment.
The Cannery is an awesome opportunity, but it comes with serious risks. One is that the approvals expire in October, and then it is back to square one. I wish the Truitts the best of luck, but I would bet it will not sell under the current city and state leadership. The proof is that no one has stepped in to buy the properties currently listed in Salem: Macy's, the land by the airport, the Cannery, and the list goes on.
Oregon is ranked 47th out of 50 states, and without proper leadership, it will reach the bottom of the list of places to invest.
I have sent white papers to the City of Salem with a road map for generating millions of dollars from its existing assets, and I did the same for Portland. I reached out to the Governor to discuss the $1.5 billion we had earmarked to invest in Oregon, only to be passed to Tim Knopp, the Chief Prosperity Officer. In my opinion, the Governor shot down data centers for political reasons. The data center project in Salem would have generated $46 million in tax revenue for the state and the city. The lack of leadership starts with the Governor and trickles down, getting worse at the level of city mayors and council members. Oregon needs a serious change in its leadership.
One last point: Oregon is a wonderful place to live if you can support yourself without relying on the local economy. It has great resources to enjoy. It is just not a great place to invest under the current administration. We are hopeful that a change happens in November. We stand ready to invest when it makes sense.
A new filing could give the Cannery project more time as the property returns to the market.
On Sept. 21, AKS Engineering and Forestry filed a Class 1 time-extension application with the City of Salem seeking another two years for the Cannery's Willamette Greenway Development Permit and subdivision tentative plan. Both are currently scheduled to expire Oct. 22.
The city lists the application as pending and identifies it as the first extension request for those approvals.
If approved, the extension would preserve important pieces of the existing entitlement package while the property is marketed to another buyer.
A Project With Years of Expectations Behind It
The Cannery has been viewed for years as a potentially significant piece of Salem's riverfront redevelopment.
When Salem Business Journal profiled the project in 2024, then-developer Trent Michels described his approach as being focused on what the property could contribute to Salem over the long term.
“Redevelopment isn’t about making a buck. This is about asking the right questions – How do we build for Salem? And build it better,” Michels told SBJ at the time.
The development team and parts of the proposed project have changed since then, but the site remains one of the largest redevelopment opportunities immediately north of downtown.
When SilverSphere became involved, Stickney discussed a broader vision for the property during a June 25 Salem Business Journal Podcast interview.
“We want to make this a destination, not just an apartment complex,” Stickney said.
The concept he discussed included housing along with restaurants, retail, outdoor gathering areas and other uses intended to draw people to the riverfront.
SilverSphere is no longer under contract for the property, leaving the next phase of the project to another potential buyer.
Housing Remains Part of the Larger Salem Conversation
The Cannery's approved 382 housing units would also enter a Salem market where housing supply and affordability remain major issues.
Jimmy Jones, executive director of the Mid-Willamette Valley Community Action Agency, discussed the relationship between housing supply, rising rents and homelessness during a March 5 Salem Business Journal Podcast episode.
Jones said Salem needs additional housing across multiple income levels, including middle-income housing, to create more movement within the housing market and increase the availability of lower-cost homes.
The episode, which also included Church at the Park's DJ Vincent, covered homelessness prevention, shelter demand, housing costs and the pressures facing Salem residents.
Jones has also emphasized the importance of increasing housing supply in other public discussions.
“Services alone are not enough. We must also have supply side answers,” Jones said during a 2024 event on Oregon housing legislation.
Commercial real estate professionals have raised similar issues about the conditions affecting new development.
During a Salem Business Journal Podcast conversation with Nathan and Ian Levin of the Nathan Levin Company, Ian Levin discussed the role a growing economy plays in supporting households, businesses and commercial real estate activity.
At a Salem real estate economic forum earlier this year, multifamily specialists also discussed construction costs, financing, rents and vacancies as factors affecting whether new apartment developments can move forward.
Those conditions will be part of the calculation for any developer considering the Cannery property.
