Former Kmart site to get a massive makeover in west Raleigh. Here’s what’s next.
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- Cityplat bought the 118,000 sq ft former Kmart in early 2025 for $14 million.
- Raleigh rezoned 12.08 acres to allow up to 20-story mixed-use development.
- Developer invested $7 million, subdivided space, and leased leisure and retail tenants.
For years, a massive retail property on Western Boulevard — once occupied by a Kmart store — has sat vacant just outside Raleigh’s Beltline in Wake County.
It’s now under new owners and primed for a $500 million makeover after the City Council recently voted 5-3 to rezone the 12-acre site at the Western Boulevard and Interstate 440 interchange,about two miles west of N.C. State University.
Raleigh-based CityPlat may now build up to 20 stories of commercial mixed-used development, including apartments, up from the five stories previously allowed on the site.
Triangle Business Journal first reported the rezoning.
In an interview Tuesday, CityPlat principal Vincenzo Verdino said the project is in the planning stages and includes building a mixed-use complex similar to Kane Realty’s North Hills’ Main District mixed-use expansion.
“I don’t know if we’ll go up to 20 stories. We’re testing the market,” he said. “Rents and construction costs will dictate what it will be.”
He expects to break ground in “three to five years.”
In early 2025, CityPlat bought the 118,000-square-foot former Kmart building and surrounding property for $14 million, according to Wake County records
The seller, Wilmington-based Jack A. Sneeden Corp., had owned the property since the late 1960s. Over the years, it had generated interest from investors but failed to secure a deal.
In 2018, the Kmart store, a subsidiary of Sears, closed following the Sears bankruptcy.
CityPlat has reinvested around $7 million to re-purpose the existing structure, which is currently empty, with upgrades to the façade and landscaping, as well as utilities and parking.
It’s also subdividing the building into 10,000- to 40,000-square-foot retail suites to attract a range of tenants.
Among recent signings: Mythic Golf, an indoor golf venue; Final Score, an indoor basketball facility; Vavela Café; 810 Billiards & Bowling; Nail Lab and Gold’s Gym.
“By the end of the year, the entire center will be open,” Verdino said.
Founded in 2019, Cityplat is behind several developments around the Triangle, including several in downtown Raleigh.
It has an assemblage along Hillsborough Street and Bagwell Avenue ready for development. The firm also has plans to redevelop the soon-to-be former site of Legends Nightclub at 330 W. Hargett St., which it bought for $4.3 million in late 2020.
This story was originally published February 3, 2026 at 11:01 AM.
