Kohl’s Corp. could sell another of its properties in Menomonee Falls, this one a 5.5-acre parking lot where developer Luther Group plans a new industrial building.
This would be at least the fifth sale of an ancillary property by Kohl’s since 2019 in its headquarters community of Menomonee Falls. The parking lot on Campbell Drive is across the street from a building where Kohl’s formerly had credit and customer service operations.
Kohl’s sold that property in spring to Dynamic Tool Corp. after moving the employees to its main headquarters office in Menomonee Falls. The lot that is now set to change hands provided parking for that building, according to a Friday email from Jen Johnson, Kohl’s senior vice president, corporate communications.
The parking lot would be redeveloped with an about 80,000-square-foot industrial building under plans by prospective buyer Luther Group, said Dave Merrick, vice president of development and acquisition for the Elm Grove real estate firm. A rezoning is up for village review on Jan. 3, and if approved Luther Group could buy that parking lot by the end of February.
That would mean a late 2023 completion for the new industrial building. That could be built speculatively before companies commit to leasing its space, Merrick said. However, prospective tenants are already showing interest.
This is the third property Luther Group would buy from Kohl’s. The developer a few weeks ago paid Kohl’s $6 million for two industrial buildings on Ridgewood Drive that it is now marketing for lease to new tenants. In all cases, Merrick said, the redevelopment opportunities are in already well-populated areas with good access to workers and the interstate.
“It’s harder to find good infill sites,” he said.
Luther Group worked with broker Bob Flood of Founders 3 Commercial Real Estate in Milwaukee on all three agreements with Kohl’s. Flood years ago had also listed an office building owned by Kohl’s on Flint Drive in the Woodland Prime business park in Menomonee Falls. Milwaukee Tool bought that office from Kohl’s in 2019.
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