DealPoint Merrill Pays $4M for Former Kmart in Iowa

The new owner plans to repurpose the asset into a Class A self storage facility with 1,125 units.
Image via Google Street View

DealPoint Merrill LLC has purchased a 12-acre property in Urbandale, Iowa, from Signature Commercial Real Estate. According to public records, the former Kmart shopping center sold for $4 million. The new owner plans to reposition the asset as a self storage facility.

The site will be home to a 131,000-square-foot, Class A self storage center with 1,125 climate-controlled units. The property will also feature two retail pads.

The asset is located at 7501 Hickman Road, between interstates 35 and 235, next to Des Moines Buccaneer NHL Hockey Arena. Part of a retail and entertainment corridor along Hickman Road, the property is close to Agora and Sherwood Events Center, as well as AMC Theaters. Central Des Moines is less than 7 miles away.

DealPoint Merrill’s team included CEO David Frank, President Sterling McGregor, Director of Acquisitions Jason Limbert and Head of Investment Tyler Bendicksen.

In 2019, U-Haul purchased a former Kmart store in Des Moines, roughly 10 miles east of the Urbandale property, with plans to repurpose the property into a self storage facility. U-Haul is also involved in the conversion of an abandoned retail site in Mansfield, Ohio.