Former Kmart buildings draw interest

The city’s two vacant former Kmart stores are on opposite ends of town but face the same challenge — finding the right fit for a new business.

The West 12th Street building is 75,000 square feet and sits on 6 acres.

“It’s a great opportunity for a big-box retailer looking for prime exposure on a busy retail corridor,” said Ryan Tysdal of Van Buskirk Cos., who has it listed.

“West 12th Street has some of the highest traffic counts in the city, with over 33,000 vehicles per day, and over 50,000 cars per day on nearby Interstate 29.”

Earlier this year, Kmart closed its West 12th Street location in a round of national closures. It was the last Sioux Falls store. Earlier this month, parent company Sears Holdings announced Kmart was closing in Aberdeen.

Although the 12th Street building owner has received several offers to buy the property, it is not for sale, Tysdal said, adding initial leasing conversations are already beginning with a few potential tenants.

“The site has excellent traffic counts. It’s located at a stoplight. And it has great retail co-tenancy,” he said.

The Kmart on East 10th Street is a little bigger — 93,000 square feet — and has been on the market longer.  That store closed in 2016.

The building is listed with Ryan Ammann of NAI Sioux Falls.

“We have continued interest in the property both on a lease and purchase basis. In a realm of retail space needs where square footage requirements tend to be decreasing, most of the interest has been presented in some form of subdivisibility as a function of the redevelopment,” he said.

Finding an owner or tenant to use the majority of the space has been the focus, he said, along with that user’s ability to fund construction for a sublease for the remaining space.

“Some very interesting ideas for the property have been presented, and that is what it is going to take to utilize this property to its fullest potential,” Ammann said.

Former Kmart buildings draw interest

The city’s two vacant former Kmart stores are on opposite ends of town but face the same challenge — finding the right fit for a new business.

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