Ex-Kmart site in Waukesha continues to evolve with new building

Steven Martinez
Plans for another retail building at Sunset Crossings received preliminary approval from the Waukesha Plan Commission on June 8. The new building, if approved, would be situated on an outlot on the property between the Dollar Store and AutoZone.
Published on: 6/13/2016

The redevelopment of Sunset Drive could continue with another project recently proposed at Sunset Crossings.

The city's plan commission June 8 unanimously approved preliminary site and architectural plans for a 6,400-square-foot, three-tenant retail building on an outlot at the former Kmart site, 120 E. Sunset Drive.

The old building houses an Xperience Fitness, Dollar Tree, Rogan's Shoes and Kohl's Off/Aisle, but the latest proposal involves a new freestanding structure in part of the existing parking lot — an idea consistent with a vision spelled out when the Kmart redevelopment project began in 2015.

Project developer Randy Roth, a partner at Milwaukee-based Endeavour Corp., told commissioners the redevelopment has been immensely successful thus far.

'This market has done incredibly well,' he said, explaining that the Xperience Fitness and the Kohl's Off/Aisle businesses in particular have thrived.

'So there's a lot to be proud of with how we've repositioned that property,' Roth said.

New project

The new building would be constructed on an island outlot, surrounded on all sides by a parking lot, between the Dollar Tree and AutoZone.

Roth said he already has letters of intent from three tenants.

'It's not a project that's going up only half full or a third full,' he added, but declined to name those tenants at the meeting.

Two of them will be fast-food restaurants and the third will be a retailer, Roth said, adding that they are all good, nationally recognizable brands that are not currently in the Waukesha market.

City Community Development Specialist Jeff Fortin recommended preliminary approval of the plans, but said some revisions would have to be made before final approval could be granted.

He asked specifically that the building be designed with four-sided architecture — because it will be visible from all sides — and encouraged some height differentiation among the roof lines of each tenant's unit.

Project architect Jeff Stowe said he's willing to work with city staff and commissions on the look of the building.

Redeveloping Sunset

The proposal comes as part of an ongoing redevelopment of Sunset Drive, which includes the Fox Run Shopping Center, The Shoppes at Fox River, Sunset Crossings and the soon-to-be opened Meijer supercenter.

The recent upgrades to the former Kmart site — a 115,857-square-foot building on 11.7 acres purchased in December 2014 by Lockard Development — in particular have been a commercial boon.

Lockard, a nationwide integrated real estate solutions firm in Iowa, partnered with Endeavour on the project.

Roth said the Off/Aisle store at Sunset Crossings has outperformed a similar Kohl's concept at the Mayfair Collection in Wauwatosa, which draws on a regional customer base.

The Waukesha store, which opened in March, draws shoppers almost exclusively from the adjacent neighborhood, Roth said.

'It has surprised Kohl's considerably,' Roth added.

Next step

No time line for the project was presented at the meeting, but Roth seemed interested in moving forward with the development quickly.

'This is one (project) that's already approved, ready for financing, and we'd love to get it started as soon as possible,' he said.

The next plan commission meeting is scheduled for 6:30 p.m. June 22 at city hall, 201 Delafield St.