PEMBROKE PINES, FL-Costco acquired the former Kmart store at the western end of 396,681-sf Westfork Plaza here for $7 million. It will construct a 135,739-sf Costco unit with a garden center and gas station at the center, which is located on the northeast corner of Pines Boulevard and Dykes Road. The unit will be Costco's first store here.

Miami Beach-based Terranova Corp. manages the shopping center and represented the seller, CCMCSC 2000-1 Broward Plaza LLC, in the negotiations. Kmart vacated the building when it closed many stores nationwide as part of its reorganization plan under Chapter 11 bankruptcy protection.

The deal involved numerous challenges related to obtaining approvals for a new Costco from other Westfork tenants and took more than year to complete, according to a Terranova spokeswoman, who adds Pembroke Pines is among South Florida's strongest retail markets. "Overall high occupancy makes new store sites hard to find," she says. The new Costco will replace the largest retail vacancy here.

Other Westfork occupants are Winn Dixie Marketplace and Regal Cinemas. Since taking over management of the center a little more than a year ago, Terranova has added a roster of inline tenants that includes X-Quisite Shoes, Sheek Boutique, Las Vegas Cuban Café and Chicken Kitchen.