The new owners of the former NORPAC factory in Stayton are optimistic they will be able to renovate the building and secure additional tenants within the next year or so.
During a presentation to the Stayton Sublimity Chamber of Commerce Nov. 28, developers shared their visions for what they have dubbed the Santiam Industrial Center.
Coby Holley, vice president of asset management for IRG, the company that purchased the property in January 2023, said the ultimate objective is to reinvigorate the local job market.
“Our goal here is to invest in the real estate, lease the real estate and create jobs for the community,” said Holley.
The building at 930 W Washington St. was occupied by North Pacific Canners & Packers (NORPAC) until the company declared bankruptcy in 2019. At that time it laid off 485 workers. The firm that purchased NORPAC, PNW Vegco, occupied a small portion of the building and leased additional space to the Oregon Department of Forestry, while the rest of the building sat vacant.
IRG (Industrial Realty Group) purchased the property Jan. 20, 2023, for $5 million, which included the 600,000-square-foot building and 50 acres of land. Holley said they plan to keep roughly 30 acres, including space to develop as trailer parking, while lots to the north and south will be sold to a developer who plans to subdivide them for housing.
The building itself is being divided into 10 rental units ranging in size from 11,000 square feet to 113,000 square feet. PNW Vegco and ODF will continue as tenants, while Highline Warren LLC, an auto supply distributor, has already agreed to lease a third space.
Holley said the remaining spaces may not be ready to lease until IRG is able to complete renovations of the former factory facilities. He said it is unlikely they will sign a food-processing tenant, as this industry has seen steep declines, while other industries related to warehousing and distribution are more viable.
Phase I of renovations has begun and will focus on light demolition. Phase II will be dependent on the build-to-suit needs of prospective tenants as well as city approval. He said within six months there may be opportunities for tenants with less-intense facility needs to start moving in, while it may be a year before the majority of spaces are ready to be leased out.
Though renovations are just beginning, Holley said potential tenants are already showing interest, with some even willing to occupy a unit in stages as improvements are completed.
He said IRG was able to acquire the property relatively inexpensively, allowing it to offer rental prices far more competitive than in Salem and Portland. He also said the former NORPAC employees still in the area are a draw because a new tenant has an existing labor force to pull from.
“We’re very encouraged by the feedback we’re getting,” said Holley of potential tenants.
One such prospective renter includes Snow Peak Brewing Co., the Stayton brewpub where the meeting was held. It could potentially quadruple its beermaking capacity as an IRG tenant. Pub owner Matt Spenner recalled the more prosperous days when supply trucks regularly drove through Stayton, and said his ideal is to see a Snow Peak truck pulling onto the highway.
“That’s always been our thing,” said Spenner of his desire to see the town flourish. “The goal here is to give more people that opportunity.”
Holley said IRG has purchased and repurposed similar buildings across the country. He said IRG bought the NORPAC property with cash so it does not need to keep up with loan payments. Any additional tenants, he added, would just push the project further into the black.
Holley said he hopes to hold future meetings with the community as the project continues, potentially at the building itself once Phase I is complete.
“We’re bringing some exciting changes to the property,” he said.
