City of Newberg Focuses Efforts to Sell Downtown Newberg’s Butler Property

The city-owned Butler property across from City Hall on First Street in downtown Newberg is still on the market, with a broader marketing strategy aimed at attracting higher bids.

The City of Newberg announced plans in May 2024 to sell the 0.24-acre lot on the corner of North Howard Street and East First Street for no less than its appraised value of $257,500. A local buyer had expressed interest at the time, the city said.

At an August city council meeting, local real estate agents from the Willcuts Company Relators questioned the marketing strategy for the property, which had not been listed on the Regional Multiple Listing Service (RMLS)—a publicly accessible database that provides details on available properties and their pricing.

The initial sale agreement was not finalized at the time, and city council took the opportunity to reassess its sales and marketing process for the property.

The city enlisted Sean Heaton, managing principal at Cresa, a commercial real estate firm, to assist with marketing and expanding the reach of the listing. Cresa operates across North America, with a significant presence in Oregon, including markets in Portland, Wilsonville, Eugene, and Bend.

“I insisted on using an external realtor outside of Yamhill County to ensure the listing had broad appeal and to avoid local interests influencing the selling process,” said Newberg City Manager Will Worthey.

The city council intends to prioritize buyers interested in developing the property as a mixed-use facility, with retail on the ground floor and either short- or long-term housing above.

When the council decided to list the property, anyone who had previously expressed interest was notified first and invited to submit a bid. Worthey said three potential buyers have engaged with Heaton about the property.

Interested parties may submit bids until the city council accepts an offer, Worthey added.

“It’s an attractive property,” he said. “It’s right downtown in a prominent location, and very pedestrian-friendly. We’ve received and are currently considering a significantly higher offer [than the initial offer].”

There is no firm timeline for when the city will accept a new bid, but Worthey said the city is not interested in leaving the property on the market for an extended period of time.

Correction November 18: The previous story had stated the property was back on the market. The City of Newberg never took the property off the market, but rather was increasing marketing efforts to attract higher bids.