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owntown Salem’s vacant JC Penney at 305 Liberty St. N.E. will remain empty after Back Line Real Estate, led by Nat Borchers, withdrew from a planned purchase and renovation. The firm announced Monday it would not proceed, citing the building’s extensive code and quality upgrades needed. Despite working with sellers and providing detailed cost estimates, the parties could not agree on terms that satisfied everyone.

    The property is owned by a company run by Portland developer Stuart Lindquist, who bought it for $2.9 million after the store closed in 2020. Marion County records list its value at $1.9 million. Borchers had intended to acquire the site in the summer and transform the 100,000‑sq‑ft space into an entertainment and retail hub, with a July agreement on a $5 million purchase price. The investor group—Borchers, Chris Blackburn of Clutch Industries, and broker AJ Nash—operated under 305 Liberty LLC and had previously renovated The Forge downtown. Borchers also owns the 45th Parallel Building in north Salem.

    The shuttered department store has long been viewed as a catalyst for downtown revitalization. Back Line Real Estate stated it remains committed to reimagining Salem’s spaces and will seek new opportunities to create a community gathering place downtown.

    For more information, contact reporter Rachel Alexander at [email protected].