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Realty has plans to redevelop Kmart, Reid’s property

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Realty has plans to redevelop Kmart, Reid’s property

Plans are in place to redevelop the former Orangeburg Chestnut Street Kmart and Reid’s buildings and property for new retail and dining establishments.

Grand Oak Realty LLC seeks to develop the 85,000-square-foot Kmart building by subdividing it into thee units to include a big-box retailer and grocery stores. Each unit would be from 31,000 to 48,000 square feet.

There are also plans to develop two out or standalone parcels — about 4,800 square feet and 6,000 square feet — on the front portion of the property to include small retail and dining space.

Plans are to begin construction by the first quarter of 2017, with opening by the second quarter of next year.

“We want to be able to provide local services for the college students,” Grand Oak Realty Principal Brandon Graham said, adding he envisions lunch-type outlets to include sandwich and sub shops.

Graham declined to provide names of retailers except to note square footage would be divided according to retailers’ needs.

“The property is within our existing portfolio,” Graham said when asked what attracted the company to the property. “We are doing redevelopment on behalf of the landowner and landlord.”

Graham said the company has been in discussions with the Orangeburg County Development Commission as well as city officials about the project.

OCDC Executive Director Gregg Robinson said he often receives inquiries as to why the buildings have been vacant.

“The current buildings are encumbered by leases,” Robinson said, noting the lease on the Kmart building expires by year’s end but that the Reid’s building lease does not expire until 2024. “The buildings are available but there are issues with them.”

Robinson noted both buildings are vacant because of national trends and not due to Orangeburg being “insufficient” to sustain the businesses.

Robinson said there has been interest in the buildings and the property.

“It is a high-traffic area with high visibility and at the heart of a population demographic,” Robinson said, noting the property would be ideal for a single tenant or multiple user.

Robinson said the property is suited for a shopping center, theater or even a call center.

Orangeburg Mayor Michael Butler praised plans to redevelop the retail complex.

“It will spark economic growth and that is the road we want to go,” Butler said. “We are moving the city forward with every opportunity that is presented to us. We welcome all development to Orangeburg that will benefit constituents here.”

The city would be responsible for any connection fees and business licensing.

The two properties are owned by a Columbia-based trust DWB Orangeburg LLC Interprop Inc. and DWB Orangeburg-Reids LLC.

Graham said the development would be self-funded by the ownership entity.

The Kmart store at 1470 Chestnut Street closed in early August. Kmart had a presence in Orangeburg since October 1972.

There are also plans to develop the entire 13-acre property, including the former 40,000-square-foot Reid’s grocery store at 1450 Chestnut St., but Bi-Lo Holdings LLC, which purchased Reid’s in 2013,  has the lease on the building that does not expire until 2024.

“We are in contact with those guys,” Graham said, noting the company would like to set up an arrangement where it could possibly sublease or lease to buy the property. “We want to develop the entire piece of property.”

An attempt to reach Bi-Lo officials was not successful.

In 2013, Bi-Lo Holdings LLC announced it entered into an agreement with Delhaize Group to buy substantially all of the stores in the Sweetbay, Harveys and Reid’s supermarket chains from Delhaize for $265 million in cash.

Bi-Lo then said it would close 13 of the 155 stores, including the Orangeburg Reid’s. Reid’s closed in 2014.