It’s official: The former east side Kmart building is now owned by Runnings.
Reggie Kuipers, SIOR and Michael Bender, CCIM, SIOR represented the Nohlgren Trust, the entity that owned the storied 92,000 square foot property.
The former Kmart property was sold to Runnings in early 2020 for $4.61 million, with a subsequent sale of the CarSwap parcel for $650,000, for a total sale price of $5.26 million.
The sale of the East 10th Street property took over a year to complete.
“Over the course of the deal, we had several complicated encumbrances to clean up,” Kuipers said. “But at the end of the day, it’s not the negotiations or complications that count. It’s the signed purchase agreement and getting the deal across the finish line that counts.”
What’s in store for Runnings
Runnings, owner of Campbell’s Supply Co., plans to move into the space in September 2020 after renovations are completed, with a grand opening set for October.
The location will be one of two Sioux Falls stores that Runnings will continue to operate, allowing the retailer to expand its selection of sporting, outdoor, home, and farm goods. Once the move is completed, the company plans to sell the existing 53,356 square foot Campbell’s building located at 3101 East 10th Street.
“[Kuipers] has been very responsive and forthcoming with ideas and plans that would help us reach this goal,” said Nohlgren Trust representative Jim Olson. “His suggestions often resulted in positive movement in the process, and I appreciate all he did.”
Olson also noted Bender’s commitment to the process from strategy to negotiations.
“What people don’t see are the hundreds of emails, calls, and texts clients and brokers share as a deal like this comes together,” said Bender. “The trust that’s built as we solve new problems is one of the best parts of this job.”
History in the making
After selling for $7,000 in 1948, the property at 3709 East 10th Street became the East Park Drive-In Theater with a sold-out crowd on opening night. Fast forward 31 years to 1979, and the Nohlgren Trust was formed to guide the business development of the site. Kmart and other businesses were planned and built in the years following.
“We knew the land would be someday be too valuable for a theater, and it would be more valuable as a commercial development,” said Harold Hanson in a 1979 Argus Leader story.
For more information on how the Bender team can assist in becoming part of your commercial real estate team, contact Reggie or Michael.