Former Kmart building sat mostly vacant for years near Raleigh’s Beltline. What’s next?
For years, a massive retail property on Western Boulevard — once occupied by a Kmart store — sat mostly vacant just outside Raleigh’s Beltline in Wake County.
Raleigh developers have now earmarked the 12.08-acre site for a $500 million mixed-used “live-work-play” complex.
Cityplat recently purchased the 118,000-square-foot property at 4500 Western Blvd. for $14 million, according to Wake County records. It’s about two miles west of N.C. State University at the Western Boulevard and Interstate 440 interchange.
Virginia-based Carter Bank & Trust financed the acquisition, the firm said.
“It’s one of the last contiguous, large parcels to redevelop on the western side of the Beltline,” said Cityplat principal Vincenzo Verdino, adding it’s poised to become a “flagship destination” because of its visibility from the highway.
The seller, Wilmington-based Jack A. Sneeden Corp., had owned the property since the late 1960s. In 2018, the Kmart store closed following the Sears bankruptcy. Kmart was a subsidiary of Sears at the time. Over the years, the property had generated interest from investors and been “in and out” of contract. “We offered a pretty aggressive closing timeline, which enticed the seller,” Verdino said.
Grand Slam USA is currently the building’s only tenant and occupies a suite. It’s expected to vacate in the next few months. Cityplat plans to build out the property in phases.
In the short term, the firm will invest around $7 million to re-purpose the existing structure, Verdino said. That includes upgrades to the façade and landscaping, as well as utilities and parking. The firm will subdivide the building into 10,000- to 40,000-square-foot retail suites to attract a range of tenants — “anything from hospitality and retail to entertainment,” he said.
Tenants are expected to move in “by the end of 2025.”
The firm has already received a “tremendous” amount of interest,” he said, but wouldn’t confirm any lease signings. He added they’re taking their time and being selective. “We’re trying to curate a good mix of tenants.”
Looking ahead, the firm plans to invest $500 million to build a “live, work, play” mixed-use complex similar to Kane Realty’s North Hills’ Main District mixed-use expansion with access to the planned bus rapid transit line. An exact timeline remains unclear. “The idea is to create this cohesive kind of ecosystem on a much smaller scale,” Verdino said.
Cityplat is behind several developments scattered around the Triangle, including several in downtown Raleigh.
It has an assemblage along Hillsborough Street and Bagwell Avenue ready for development, Triangle Business Journal reported. The firm also has plans to redevelop the site of a failed seven-story mixed-use project at 2510 Hillsborough St. and the former Arby’s property at 3415 Hillsborough St. between N.C. State University’s main campus and Meredith College.
On the Triangle’s outskirts, it’s developing a $140 million mixed-use project in Fuquay-Varina, TBJ reported.
This story was originally published January 23, 2025 at 9:47 AM.
