Sears Acquires Kmart Lease in $15M Deal

PORT ST. LUCIE, FL-Sears, Roebuck and Co. has acquired a 114,500-sf Kmart lease in Port St. Lucie, FL, in a deal valued at $15 million for the remainder of the existing lease period. The price equates to approximately $8.73 per sf.The lease, at Shoppes at St. Lucie West, expires in 2019, but also has 10 five-year renewal options. The value of the lease would be another $50 million for the options.Sears is scheduled to open there in mid-2005. For 10 years, Kmart has been an anchor tenant at the shopping center, along with Publix Supermarkets. The deal is part of Sears’ effort to grow its off-mall presence on a national level. On June 30, Sears said it was acquiring up to 54 Kmart stores and seven Wal-Mart stores.As part of its Port St. Lucie acquisition, Sears is planning to renovate the store’s interior and use Sears Grand merchandising and design elements in a mid-size format. This Sears will be one of the biggest of the company’s new stores.Menin Development Cos. Inc., based in Palm Beach Gardens, FL, is the owner and property manager of Shoppes at St. Lucie West, which has more than 200,000 sf of leasable space. In addition, Menin Development Cos. plans to expand the retail center by more than 200,000 sf on an 18-acre, adjacent parcel next year. Other current tenants there include GNC, Radio Shack and CardSmart.