The first half of 2026 saw the completion of some major construction projects in Salem, as well as the start of several more.

Workers are continuing to build the six-story Citizen Apartments in downtown and the Kuebler Village commercial development near Costco.

Meanwhile, efforts to revive the ex-Rite Aid building, the former JCPenney department store and the empty lot dubbed “The Pit” are showing signs of progress.

Here’s an update on some key projects.

Citizen Apartments joins downtown skyline

Originally the site of Salem City Hall and then a parking lot, the property at 277 High St. N.E. is gaining a six-story, 105-unit apartment building.

Deacon Development, which delivered the Rivenwood Apartments nearby in 2024, has dubbed this $25 million project Citizen Apartments as a nod to its storied history as the heart of Salem government.

Crews broke ground this past October and are scheduled to finish in early spring 2027.

The 78,855-square-foot building will include 16 affordable housing units as part of the city’s Multiple-Unit Housing Tax Incentive Program.

Amenities will include a coffee bar, a mail room with parcel lockers, a fitness center, secure bike storage, a pet wash station, electric vehicle parking and charging, a co-working lounge with a private work pod, a community room equipped with a kitchen, games, a semi-private theater room, and a roof terrace with a grill and city views.

Company submits proposal for ‘The Pit’

A fenced hole in the ground remains after a bank building was razed in 2017, leaving what is commonly known as “The Pit” at the southeast corner of Liberty and Chemeketa streets.

Deacon Development initially also purchased this land next to the Citizen Apartments site but sold it after determining the conditions placed on it by the city would make development financially infeasible.

The property was reacquired by the previous owner, West Linn-based FT LLC, which also owns the adjoining building used by Pacific Office Automation. Company officials said they want to build a surface parking lot to serve the adjacent building, but that is not permitted under the city zoning code.

FT LLC has submitted a land use application, and it remains under city review. It’s the first official redevelopment proposal since the bank building was demolished.

Mexican grocery store to open in downtown

A long-awaited downtown grocery store is due to arrive in September, ending a yearslong vacancy in a former Rite Aid building.

El Torito Supermarket will open at 435 Liberty St. N.E.

Husband and wife Alfredo Mendez and Lily Perez opened the original El Torito Meat Market on Lancaster Drive about 20 years ago. Their stores have a meat counter, a produce section, a bakery, a hot deli, and grocery items.

The Rite Aid on Liberty Street closed in December 2023 following the company’s bankruptcy.

Salem’s Urban Renewal Agency Board voted in May to allocate $470,000 from the Riverfront Downtown Urban Renewal Agency capital improvement grant program for the supermarket.

According to city documents, the store is expected to provide 30 new jobs.

New tenants on the horizon to fill space

When the planned purchase of the former JCPenney building fell through in October 2025, it remained under the ownership of Penny Building, a company tied to developer Stuart Lindquist.

The 100,000-square-foot building has been vacant since JCPenney exited in 2020.

Lindquist confirmed in April that a furniture retailer would lease an 11,070-square-foot spot on the first floor. He said his company wants to fill the empty space with street-facing businesses that complement the area and cater to the increase in foot traffic brought by new apartment complexes in downtown.

“A single-tenant department store is being converted into a multi-tenant building in response to Salem’s demand for smaller office and retail spaces,” developers stated in their land use application submitted to the city.

A site plan approved by the city in May calls for a 5,000-square-foot jiujitsu gym on the first floor, along with separate retail spaces in the basement and the first and second floors.

Cannery transformation gains traction

A new developer is stepping up to helm the $150 million transformation of the former home of Truitt Bros. Cannery north of downtown Salem after the project stalled under previous leadership.

Nearly 800 apartments, a grocery store, an automatic parking garage, a wine bar and restaurants are planned at the site.

The deal is currently under contract and expected to close this summer. Demolition would begin shortly thereafter.

Aaron Stickney, co-founder and managing member of SilverSphere Capital, said in March that funding for the sale and construction has already been secured.

436 housing units on the rise near school

A big multifamily development is under construction at Doaks Ferry Road and Orchard Heights Road near West Salem High School.

The project is set to bring 426 apartment units and 10 townhomes to the previously undeveloped site.

There will be a mix of 31 three-story buildings and three townhome buildings along with a clubhouse, a recreation area and parking.

Shopping center under construction

Kuebler Village is now being built at the southeast corner of 27th Avenue and Kuebler Boulevard near Costco.

According to city documents, the project is connected to Mosaic Management, which also owns several senior living facilities in Oregon.

A listing for the 24.64-acre parcel says Kuebler Village will be a “vibrant and dynamic, mixed-use community with I-5 visibility.”

The listing details several components, including drive-thrus, a hotel, a “destination shopping center,” multifamily housing and the Mosaic corporate headquarters.

The city approved a site plan review for a planned U.S. Market convenience store and eight gas pumps along 27th Avenue near the roundabout in 2025. Plans for a Black Rock Coffee Bar drive-thru were approved this past December.

Editor’s note: This article first appeared in The Statesman Journal and then was distributed on the USA TODAY Network via Reuters Connect.

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