The properties, which total nearly 3 million sf, are being dealt off by a joint venture that includes Kimco Realty Corp., Simon Property Group and the Schottenstein Group. Earlier, Minneapolis-based retailer Target Corp. grabbed 35 locations. Although terms of Monday's deal were not disclosed, Target estimates it will spend $700 million on its purchase of a package 25% larger than what Sears is acquiring.

Target and Sears will likely be the largest dispositions, New Hyde Park, NY-based Kimco director of investor relations Scott Onufrey tells GlobeSt.com. "Sears really wanted to do a bit more with the auto sites and Target wanted to get into West Coast markets," Onufrey says.

The northwest suburban-based retailer will convert 14 of the former department stores into Sears outlets, while the other four locations--Huntington Beach, CA, Pleasant Hill, CA, San Jose, CA and Towson, MD--will carry the Great Indoors theme. Ten freestanding Wards Automotive Centers will become Sears Auto Centers.

Locally, outlets include a freestanding store on US Route 14 in northwest suburban Crystal Lake as well as a store and auto center in the North Riverside Mall in that western suburb. Also sold was a freestanding store at 1607 36th St. in Downstate Peru, which also includes an automotive center.

Although closing is expected to occur in mid-April, Sears says the locations will be shuttered until spring of 2002 while they are renovated.

Three of the locations are in Maryland--in the Annapolis Mall, Harford Mall in Bel Air and Valley Mall in Hagerstown. All three also have auto stores. In Manassas, VA, a store and auto center are part of the package.

Two more stores are in the Phoenix market-_Aracadia Crossing in the city and Arrowhead Mall in suburban Glendale. Other store locations involved are Cottonwood Mall in Albuquerque, NM, Hulen Mall in Fort Worth, TX, Meadville, PA and Pueblo, CO. The Albuquerque, Fort Worth, Glendale, Meadville, Phoenix and Pueblo locations also include auto stores. An auto store in Oakridge Mall in San Jose, CA rounds out the package.

Onufrey says interest is strong for the remaining 75% of the Wards assets. "We receive cold calls daily, and we are in negotiations with retailers," he adds. "Some will be long-term projects that could take a couple of years."

Instant Insights /

Sears Acquiring 3 Mil SF of Former Wards Space

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