MARION, IN-A retail development here slowed by the economic downturn received a shot in the arm recently. Kohl’s has purchased a parcel of the University Marketplace project, a 350,000-square-foot retail center under construction by Southfield, MI-based Redico.

The project, at the southwest corner of 38^th Street and Western Avenue, is about half built. Redico developed a 160,000-square-foot Meijer store on the site in 2008, along with an Afena Federal Credit Union. Arbor Homes LLC built more than 65 single-family homes north of the site. However, activity slowed in 2008, said Scott McCarthy, vice president for retail development with Redico.

“The retail market was significantly challenged in the past couple of years,” McCarthy tells GlobeSt.com. “This small town, the county seat, has struggled, but has kept a firm employment base.”

He says the 55,000-square-foot Kohl’s store has brought renewed interest and conversations from potential tenants. There’s an opportunity to do outparcel and inline development, but he says retailers interested in Indiana are still cautious. “There’s not a lot of development, but we have seen retailers looking to expand their businesses. We’re seeing a few rays of sunlight, but nothing’s going to be easy this year, I think,” McCarthy says.

Dale Watchowski, president of Redico, said Marion has been historically underserved from a retail perspective. “This southern area of the city, with the continued expansion of Indiana Wesleyan University and residential growth, has a growing need for retail venues of the kind Kohl’s has successfully provided to communities across the country,” he said in a statement.