Real Deals

Real Deals: NY real estate firm acquires former Kroger store in Southeast Raleigh

dbracken@newsobserver.comMay 28, 2014 

— The former Kroger store on Martin Luther King Jr. Boulevard in Southeast Raleigh has been acquired by a New York real estate firm.

Nyack-based Market Street Partners acquired the 60,000-square-foot store this month for $2.67 million, according to Wake County property records. Andreas Kissal, the firm’s managing partner, said Wednesday that a confidentiality agreement prevents him from disclosing plans for the 6.65-acre site.

He said Market Street acquires various properties as joint ventures with its clients.

“Beyond that, I can’t comment,” Kissal said.

Kissal formed 1610 MLK Boulevard LLC to acquire the property, and his is the only name listed on the corporation records on file with the N.C. Secretary of State’s office.

Market Street describes itself on its website as “Where Stranded Commercial Real Estate is repositioned for development.” The company lists two sample projects in which it has been involved, but each is described only in general terms.

Market Street was involved in the redevelopment of a former Colgate Palmolive plant in Clarksville, Ind., according to a 2011 news release. In September, an entity affiliated with the firm paid $1.9 million for another former Kroger store in a shopping center in Nashville, Tenn.

Kroger announced in November 2012 that it would close its Raleigh grocery stores on New Bern Avenue and Martin Luther King Jr. Boulevard because they had been losing money.

The New Bern Avenue store, which Kroger didn’t own, has since been reopened as a Carlie C’s IGA.

Kroger’s decision to close the stores stunned Southeast Raleigh residents and eventually led state lawmakers to create a committee to study the issue of food deserts. In urban areas, residents live in a food desert if they are more than a mile away from a grocery store.

The shuttered Kroger store was also recently pointed to by backers of a bill in the N.C. House that would cap local privilege taxes at $100. A Senate version of the bill would eliminate the tax completely. The House plans to concur with the Senate bill.

Supporters of the legislation say excessive privilege taxes have prevented properties such as the Kroger site from being redeveloped.

Bracken: 919-829-4548 or dbracken@newsobserver.com; Twitter: @brackendavid

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