Old Kmart has new owner | NevadaAppeal.com

Old Kmart has new owner

Becky Bosshart
Appeal Staff Writer

A commercial real estate brokerage representative announced Friday that the Kmart building in North Carson City has a new owner, but details have not yet been released. The building has been vacant for more than three years. Cathleen Allison/ Nevada Appeal

Vacant since 2003, the former Kmart building in North Carson City has a new owner who could have it rented out in 2007.

A real estate agent involved in the deal declined to disclose the buyer and the purchase price because of a confidentiality agreement. As of 5 p.m. Friday the sale had not yet been recorded with the city.

The new owner, a retail developer, is not releasing any information on the future tenant of 3456 N. Carson St. in the North Town Plaza shopping center. A city development official said the new owner will put it to a good use.

“The buyer will come out with a press release in the near future, and they will tell everybody what they are doing,” said Aiman Noursoultanova, vice president of CB Richard Ellis, a commercial real estate brokerage in Reno.

Noursoultanova represented seller Wilmington Trust Co., the underlying land owner, which had a confidential agreement with Verizon Communications. Verizon bought the 169,000-square-foot building in 2004.

“We’re pleased to complete the transaction,” said Verizon spokesman Jon Davies.

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The new owner plans on making improvements but many things are still up in the air, such as the number of businesses that will lease the former big-box store.

“It will be retail,” Noursoultanova said Friday afternoon.

This sale could transform the north end of Carson City, where the big-box store has been an empty reminder of the retailer’s Chapter 11 bankruptcy more than three years ago. Many store fronts in the shopping center remain vacant because of the absence of an anchor retail tenant.

Scott Sager, manager of Fleet Feet in NorthTown Plaza, said he would like to see cars in the empty parking lot near his business.

“I don’t think it’ll make a gigantic impact on us because we’re a running specialty store, but it’s nice to see something in there.”

Carson City has another big-box store on the opposite end of town that is also without a national retail tenant. Max Baer Jr. has owned the old Wal-Mart location at 4209 S. Carson St. since 2003. Baer has been unable to develop his property into a destination casino because of dispute with the shopping center regulations against casinos.

Carson City Economic Development Manager Joe McCarthy said the Kmart has been vacant for so long because it was owned by a company that was intent on selling rather than finding a tenant. He said this won’t happen again.

“The buyer is a development company experienced at putting good tenants back in aging, vacant big-box stores,” McCarthy said. “They are extremely confident that they can fill this store with quality retail tenants within a reasonably short time.”

In October 1993, Kmart bought one parcel for $2.7 million from Pavia Associates, which purchased three parcels of ranch land from Silver Oak Development for $3.4 million. The building was constructed in 1994. In 1995, the property was sold to Wilmington Trust for $16.1 million, according to the assessor’s office.

Wilmington Trust, one of the largest trust companies in the country, is based out of Delaware.

• Contact reporter Becky Bosshart at bbosshart@nevadaappeal.com or 881-1212.