The former Kmart-anchored mall in east Henrico sold for $ 4.4 million. (Noah Daboul photo)

After the eponymous anchor tenant moved out, a shopping center in the east of Henrico could soon be redesigned by a new owner.

The retail strip long known as The Kmart Shopping Center at 4715 Nine Mile Road sold for $ 4.4 million last month.

The buyer was Maryland-based commercial real estate developer ARLS Properties.

Most of the mall consists of the 90,000 square meter former Kmart space that has been vacant since the retailer left three years ago.

Justin Rosemore

ARLS Properties' Justin Rosemore said renovations are planned for the big box rather than demolition and it will likely be divided. He said the company is waiting for tenant inquiries before they start the renovation so they can have plans that suit what tenants want.

"It's hard to find box tenants right now because they're not as active as they were in the past," said Rosemore. "We're unlikely to find someone who takes up all of 90,000 square feet, so there's a chance it could be shared."

Other tenants in the center include a pawn shop, salon, Chinese restaurant, and the East End pregnancy center. The property is also close to Eastgate city center and Fairfield Middle School.

Rosemore also said ARLS will redeem the companies' existing leases at the mall, but may need to visit them again and work out a deal with them.

Divaris Real Estate's John Madures handled the sale and said they are looking for tenants to fill the vacancies, two of which could be fast food restaurants. He said the property was originally built for Kmart around 1983.

Madures said initial work on the property will be done by Baker Roofing Co., Jones Striping and SealCoating, and others.

Rosemore founded ARLS Properties in Baltimore about 14 years ago. Since then, the company has grown to not only cover the Baltimore area, but also own properties from northern Delaware to southern Virginia. It mainly focuses on commercial real estate, but also has some mixed-use developments with multi-family components.

The Henrico deal is the company's first in the Richmond area. ARLS has four other locations under contract, but Rosemore didn't want to discuss the details.

"There are different sectors in commercial real estate that are really hot," he said. "Retail has cooled off during the pandemic but appears to be recovering quickly. We also have office buildings that seemed to be cooling off during the pandemic, but it looks like they're recovering too. "

source https://seapointrealtors.com/2021/07/30/shopping-center-with-vacant-former-kmart-in-henrico-sells-for-4-4m/

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