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TROY, MI-The 40-acre Kmart Headquarters, which, six months ago, was undergoing death throes due to layoffs relocations, will have a second life as a mixed-use property that will include residential, retail, entertainment and office facilities.

Washington, DC-based Madison Marquette Realty Services, LP, which acquired the property at 3100 W. Big Beaver Rd. from Kmart Holding Corp., has announced plans to turn it into a “destination location,” though a source with the acquiring company tells GlobeSt.com that there is no set date on when renovation will begin, and determining a completion date is “premature.”

“Now that they’ve just closed the deal, they’re starting to work with city officials on the planning phases,” the source says.

The likelihood is that repositioning and rehabilitation likely won’t begin for another year, however. One condition of the property sale provides Sears Holding Corp. of Chicago, which acquired Kmart in early 2005, with a 12-month lease, including option rights to extend the lease’s time frame, if necessary. The source notes that the property will continue operations under Sears/Kmart for at least another year.

Located across the street from Somerset Collection, a retail power center that includes anchors such as Neiman Marcus, Saks Fifth Avenue and Nordstrom, Madison Marquette’s director of investments, David Brainerd sees an urban mixed-use development as a logical complement to the retail component.

“We hope to create a unique live/work/play environment that complements the elegance of the Somerset Collection,” Brainerd said in a released statement referring to the acquisition and development.

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