Former Kmart site is now a Chili's island. Are there plans for development?

In the 800 block of the bustling South College Road, one lone chain restaurant is situated on a largely vacant plot of land.

The area that once also hosted a Kmart and a Burger King is now a distinct Chili's island, where a single Chili's Grill and Bar resides. The Kmart building sits stripped of its signage and empty, while the old Burger King building has since been torn down.

Small green weeds sprout from the parking lot, while next door, another undeveloped site appears equally untouched.

How has the nearly 13-acre property at 815 S. College Road remained vacant for so long, despite its location in a main retail center of Wilmington, and are any development plans currently in the works?

When did the Kmart close?

The Kmart formerly located on the property closed in 2017, according to previous StarNews reporting. The store closure was one of 78 Kmart stores to close nationwide within the first half of that year.

Previous Coverage: What's happening at the former Kmart in Wilmington? Here's what we know

Who currently owns the property?

The current owner of the property is Z. A. Sneeden's Sons Inc., according to the city's development tracker. The property, which includes both the 815 and 819 S. College Road addresses, was originally purchased in 1972 for $375,000 and now has a tax value of approximately $4.9 million.

The Wilmington real estate developer also has ownership of 805 S. College Road, the location of a former Burger King. The building located on this property has since been demolished.

The StarNews attempted to contact the owners of Z. A. Sneeden's Sons Inc. but did not receive a response by the time of publication.

Why is such a large property in Wilmington still vacant?

Filling large commercial spaces is far from a quick process.

The leasing process for large commercial spaces can take five to six months, Brian Grabowski previously said to the StarNews. Grabowski is the senior vice president with Trademark Properties based out of Raleigh and was the listing agent for the former Dick's Sporting Goods at 816 S. College Road.

Locations remaining vacant for 18 to 24 months is relatively normal, Tom Heitman, owner and CEO of Wilmington Commercial & Residential Real Estate, previously told the StarNews.

Still, seven years is longer than an expected two-year vacancy. The delay could possibly be attributed to the owner's intentions rather than the property's leasing or selling potential. Heitman previously referred to the former Kmart site as a "special case," noting that the owners of the property don't seem to be in any hurry for redevelopment.

The site hasn't lacked attempts at redevelopment. Plans for an apartment complex and additional retail space at the former Kmart site were pitched in October 2017, according to previous StarNews reporting.

The complex could've housed approximately 900 residents in a variety of one-, two-, and four-bedroom apartments. New retail spaces, parking decks, and surface parking were also part of the proposed plans which ultimately fell through.

Previous Coverage: The big empty: Lots of large available spaces in Wilmington, but 'market infill is coming'

Are there any future plans for development?

Any future plans for redevelopment are not immediately evident.

While 815 S. College Road, Wilmington, was previously listed for lease by a Charlotte-based listing broker and agent, the property currently shows as no longer available for lease. The former listing highlights multiple aspects of the property, including the area's high traffic volume, proximity to other retail spaces, and 12.75 acres.

No new activity for the property's address appears on the New Hanover County development activity map.

In addition, the city of Wilmington has not received any new applications for development of 815 S. College Road within the past year, Dylan Lee with the city's communications office said in an email.

Wilmington's comprehensive plan identifies the site as an urban mixed-use center and an area of opportunity, according to previous StarNews reporting.

Some have speculated that University of North Carolina Wilmington should redevelop the property due to its proximity to the university's campus. In July 2023, Andrea Weaver, chief marketing and communications officer with UNCW, said the university did not have plans to purchase, redevelop, or lease the site in an email to the StarNews.

"The university's plans about the property ... have not changed," Weaver said in an email this July.

Previous Coverage: Plans for former College Road car dealership could revitalize dormant Wilmington spot

Are there any new developments nearby?

A former Honda dealership bordering the lot of the former Kmart will be redeveloped into 298 apartments and 15,000 square feet of retail space, according to previous StarNews reporting. Though, the lot still remains vacant.

The project is led by the Bella Vista Development Group. Originally, construction at the site was expected to begin at the end of 2023 and last for two years, according to previous StarNews reporting. The project faced delays in the technical review from the city.

While the current status of the project is unknown, the proposed redevelopment, located at 821 S. College Road has been released for construction, Lee said in an email. The StarNews was unable to contact with Mariana Molina, president and founder of Bella Vista Development Group, before publication.

No new applications for additional projects near the former Kmart site have been submitted to the city within the past year, Lee said.

This article originally appeared on Wilmington StarNews: Former Kmart site on College Road in Wilmington, NC, still vacant