There’s been some buzz in Benton Township lately about the possible resurrection of the old Target store, perhaps split in half for two retail outlets. Nothing for sure. No announcements. But some ‘informed speculation’ going on after a contractors information site posted some plans for review by firms that might be interested in the renovation work.
Chicago based real estate developer Jim Paul has been active in Benton Township redevelopment for more than 30 years. So we asked Paul what he has heard and the chances for something finally happening in the long vacant Target space. Target closed in February, 2018.
“I see some positives in the sense that I had heard about somebody doing the Target building . One of those deals fell apart because one of the potential users had a conflict with one of the existing tenants (in theadjoining center.) That tenant could either accept and let this guy come in or not And he said no. I understood why because they’re twice the size of that current tenant at Fairplain. But that can sometimes be worked out and maybe over time it has been.”
Paul says there is reason to be optimistic, but celebration may be premature. “Target has recently said that they have it under contract. But again, a contract only means that Target’s giving somebody (a developer) some time to find tenants, or hopefully they may have them.”
Paul points out that while the Target space may appear to be a modern building ready for a new tenant, the existing owner (an entity related to Target Stores) will likely have to spend considerable cash to bring the space up to 2025 standards and to operate efficiently.
“My understanding is that this current contract purchaser is quite costly (to the existing owner). A broker has told me that a lot of the systems are shot. And when I say shot, I mean particularly the HVAC on the roof. Target opened before 2000, so it’s 25 years old. That’s its useful life.”
So, you know you’re going to have to do it, and you’re going to get a better price doing it all at one time. It’s expensive. But that’s what the Target building needs, They could even need a new roof… they only last so long. And when you’re a tenant, you go in there and want to make sure that you’re not going to incur the expense”.
Jim Paul has spent decades trying to lure retailers to Benton Harbor and other markets. With many big names in retail shutting down stores (Kohls and Macy made recent closure announcements), who might be likely prospects for the two possible store fronts in the former Target location?
“The one that jumps out at me is Homegoods. Not necessarily furniture, but a concept like Homegoods. It is a part of the TJ Max companies (with a store in the same retail strip center). I would be surprised if that wasn’t one of the potential users there. I talked to them years ago when I still owned FairplainPlaza. Tthey wrere a new concept then, and they’ve done very well.
When I talked to them, they said, ‘We’re interested in Benton Harbor’ because in the early stages, they were finding the stores that they opened that had strong second-home markets were doing very well.”
Paul emphasized that he is no longer involved with the properties related to Fairplain Plaza, including the Target site. His last major work in Benton Township was the redevelopment of the strip center across M-139, where JoAnn Fabrics and Ollie’s Bargain Outlet are operating. However, he remains a keen observer of the local market and still owns some property here. MoodyOnTheMarket.com will continue our conversation with Jim Paul . Stay tuned!
By Gayle Olson, MOTM Contributor
