Sept. 24, 2019

An investment group is hoping to turn the former east-side Kmart into a commercial center that could house a variety of businesses.

The 92,000-square-foot building sits on 9 acres at 3709 E. 10th St. The building has been vacant since Kmart closed in 2016.

“The plan is to make it look awesome, put a new face on it and subdivide it,” said Vince Lubben, who is leading the proposed investment group.

The investors have the building under contract and would like to begin redeveloping the site next year, assuming there’s enough interest to put the deal together.

“It’s pretty much a blank slate,” Lubben said. “We are open to opportunities.”

Lubben is the co-owner of Wireless World, which has 45 locations, with three stores in Sioux Falls. He co-founded the business in 1999. The Kmart property won’t be his first development project, either. He owns the retail center on the northeast corner of 41st Street and Kiwanis Avenue, as well as a retail center in Yankton.

“I just saw the opportunity,” he said in describing the Kmart property.

“Initially, I was thinking indoor climate-controlled storage, but I see a lot more than just that. We might use part of the back for that if we deem it appropriate … and see who comes to the table. But as we see the amount of traffic outside … close to 25,000 cars a day … and the big parking (lot), which is hard to get in a lot of places, it opens up a world of possibilities.”

The property is co-listed with Jim Dunham and Stephen Rueber of Jim Dunham & Associates.

“We’re researching all the potential reuses and redevelopments all over the U.S., looking at what would be exciting to come to Sioux Falls,” Rueber said. “We’re excited to sit down with potential tenants in our market and rely on the brokerage community that might be working with national and regional tenants. We’ll be hitting the streets and scheduling meetings and presenting the opportunity. We think it’s going to be very well received.”

The plan would be to divide the building into several spaces, beginning at 10,000 square feet. It also meets building codes for a church, Dunham said, adding there already has been interest from churches, restaurants and offices.

“It’s a rare East 10th Street opportunity for its size,” he said. “The parking is incredible because it allows for any kind of use. We’ve had initial interest from pretty much every genre.”

The hope would be to close on the property in early 2020.

“I think it will be the most exciting redevelopment between Dawley Farms and downtown in 2020,” Rueber said. “Driving by, you see a building sitting here decaying, and that’s not going to be the case moving forward. If we go through with it, it will rejuvenate this side of town.”