Developers to build $35 million ‘Premier’ medical offices at vacant Little Rock Kmart location

One of the last vestiges of the Kmart and Sears brand in Central Arkansas will soon be replaced by a $35 million medical facility, local developers announced Thursday (Sept. 27).

According to representatives for Premier Gastroenterology Associates and Newmark Moses Tucker Partners (NMTP) of Little Rock, plans are in the development for the $35 million “Premier Medical Plaza” at the vacant Kmart store at 10901 Rodney Parham Road. Upon completion of the project in the summer of 2019, the renovated office complex will provide new medical, clinical and surgery facilities for several local physician groups in 100,000 square feet of space.

According to Premier Medical officials, the total price for the entire property under development was $12 million.

“(We) purchased the entire shopping center, not just the Kmart building,” said NMTP spokeswoman Sarah Burkhead.

The project plans call for demolition and environmental work to begin on the old Kmart site in the next 30 days, with construction underway by early 2019. The architect for the project is WER of Little Rock with Clark Contractors as the general contractor. Construction financing is provided through First State Bank of Jacksonville, officials said, with tenants ready to occupy the medical offices by the mid-2019.

“This is an ideal location for our physicians and the thousands of patients we see each month from the Greater Little Rock area and around the state,” said Bill Greene, Premier’s CEO.

Premier will be the owner and principal occupant, occupying nearly 45,000 square feet of space in the building. In addition to Dr. Terence Angtuaco, Premier Gastroenterology’s partners include Drs. Angelo Coppola, Dhaval Patel, Paul Svoboda, Steve Jones, Brian Hughes and David McElreath.

“Premier is a physician-owned practice, opened by a group of doctors who have worked together for several years. Our vision is to create a new culture in healthcare that focuses on the highest quality medical care possible and an exceptionally high level of patient satisfaction,” said Angtuaco.

Chris Moses, president & CEO of NMTP, said renovation on the aging retail location that is part of Sears Corp. will include a complete new look for the property inside and out.

“The Kmart store will not be recognizable once the exterior improvements to the building are complete. In addition, the center will have a new parking lot with extensive landscaping, a new entry off both Rodney Parham and Shackleford Roads and signage,” said Moses. “It will transform not only this largely vacant center but also the neighborhood around it.”

According to Sears Holding, the parent company of Sears and Kmart department store chains, Russellville has the lone remaining Kmart location in Arkansas. In January, Sears officials announced plans to shutter 108 Kmart and 42 Sears location in 40 states. Other Sears and Kmart locations are scheduled to close in November.

Earlier this week, Sears CEO and largest shareholder Eddie Lampert proposed in a Securities and Exchange Filing to sell more real estate assets and restructure the department store chain’s debts to stay afloat. Lambert plan included the sale of $3.2 billion in assets, including vacant Sears and Kmart real estate across the U.S. worth nearly $1.5 billion. The securities filing did not include any details of Sears or Kmart locations that were up for sale.