Former Kmart site in West Raleigh approved for major redevelopment

Feb 12, 2026 | News

A long-vacant 118,000 SF former Kmart at 4500 Western Blvd. has a new future after Raleigh City Council approved rezoning that allows up to 20 stories of mixed-use development on the 12-acre site near I-440.

Key facts:

  • Location: Western Blvd & I-440, just west of N.C. State
  • Purchase price: $14M (CityPlat, Raleigh-based developer)
  • Zoning change: From 5 stories → up to 20 stories
  • Potential uses: Apartments + commercial mixed-use
  • Timeline: Groundbreaking expected in ~3–5 years (market dependent)

Near-term strategy:
• CityPlat has invested ~$7M upgrading the existing structure
• Building subdivided into 10,000–40,000 SF retail suites
• Early tenants include indoor recreation, fitness, and food uses
• Full retail opening expected by year-end

Why this matters:
This project reflects a broader trend of obsolete big-box retail being repositioned into higher-density, mixed-use assets—especially near universities, major roadways, and established neighborhoods.

Zoning flexibility, patient capital, and interim income are doing the heavy lifting here.

https://www.newsobserver.com/news/business/real-estate-news/article314418786.html

Dylan Cunningham

J Dylan Cunningham, CCIM is the founder of Oak Street Commercial Real Estate, LLC, a firm located in Apex, NC on a mission to help business owners and commercial real estate owners create long-term strategies that align with their objectives through real estate.

We believe in going beyond the transaction, taking a deep look at where you want to be in five, ten or even twenty years from now—and how we can help you get there with thoughtful, strategic decisions today.