Hermiston Development Property

Description

The Hermiston Development property is 38.4 +/- contiguous acres of vacant land, zoned R-1, located within the city limits of Hermiston, OR.  Residing at the end of West Punkin Center Road, the location is perfect with quick access to the heart of town as well as an easy exit if your travels take you elsewhere.  The property is situated on a mild sloping hill, allowing for excellent top to bottom southward views of the City of Hermiston, the northeastern Oregon’s rolling foothills, as well as the more distant Blue Mountains.
Hermiston Growth and Economy:
Hermiston, Oregon, has experienced significant economic growth in recent years, positioning itself as a dynamic hub in Eastern Oregon. In 2024, the city set a new benchmark with commercial, industrial, and residential construction permits totaling $266 million, marking a record for development and investment. This surge in construction activity aligns with Hermiston's robust population growth; projections indicate a 33% increase from 2016 to 2035, with 80% of Umatilla County's growth occurring in the Greater Hermiston Area. This expansion is further supported by the area's strategic location near major freeways and proximity to the Tri-Cities in Washington, enhancing its appeal for logistics and data center operations. As Hermiston continues to grow, it attracts significant investments, diversifies its economy, and solidifies its status as a key economic center in the region.
IRS Opportunity Zone:
The property also sits inside a designated IRS Opportunity Zone, providing additional incentives and possible funding help for development projects. Here are the key benefits for investors in Opportunity Zones (Chatgpt):
An IRS Opportunity Zone is a designated area in the United States where investors can receive tax incentives to encourage long-term investments in economically distressed communities. These zones were created under the Tax Cuts and Jobs Act of 2017 to help stimulate economic development in low-income areas by offering tax breaks for investments in these regions.
Capital Gains Deferral: Investors can defer tax on capital gains from the sale of assets if the proceeds are invested in Qualified Opportunity Funds (QOFs) that invest in Opportunity Zones.
Exclusion of Gains: If the investment is held for at least 10 years, any capital gains from the Qualified Opportunity Fund’s investment are excluded from taxes.
Exclusion of Gains from Original Investment: There are also benefits for gains on the sale of an investment in a Qualified Opportunity Fund after holding it for a set period. These incentives are meant to drive investment in infrastructure, housing, and businesses, helping to revitalize underdeveloped areas while providing investors with substantial tax savings.
West Punkin Center Extension Project:
The future looks bright for this property as proposed city expansion will bring one of Hermiston’s largest expansion projects right to the doorstep of this land.  The West Punkin Center Extension Project will extend the existing Punkin Center Road straight out, bridging the Umatilla River, and connecting with existing road system on the west side of the river, taking you straight to Interstate 82 access.  This future development will provide a new main-line outlet for travelers and commuters alike, furthering the options and opportunities associated with this property.
Property Quick Facts:
-38.4 +/- acres zoned R-1 (minimum lot size 8,000sqft) within the city limits of Hermiston, OR.
- Property sits inside an IRS Opportunity Zone, providing additional tax breaks for every dollar spent on development or improvements. 
- Adjacent to the future site of the West Punkin Center Extension Project which will extend the existing road, bridge the Umatilla River, and provide new direct access to I-82. This road will serve as a major Ingress/Egress option for Hermiston small vehicle travel.