The developer responsible for revitalizing two aging plazas on U.S. 1 in Vero Beach in recent years has plans for the former Kmart building when its lease expires after 2024 – or even before that date: a large apartment complex.
Michael Rechter, president of Integra Real Estate, has had informal discussions with the city’s planning director about the possibility, though no paperwork has been filed.
Rechter envisions tearing down the dated building that housed Kmart for decades and building a 250-unit apartment complex on the 8-acre site – a move Director of Planning Jason Jeffries supports.
“It’s possible,” Jeffries said, though it might take a rezoning to allow.
Jeffries said other communities with big box stores have been re-examining how they can be redeveloped for future use. Nationwide, brick and mortar retailers have been scaling back their operations as more business shifts to online shopping.
“Given what’s going on in the retail sector,” Jeffries said it’s smart to consider other uses for those properties. Already, the city’s comprehensive plan incorporates redevelopment and infill strategies to keep the city economically viable.
The trick will be to ensure the potential apartment complex is compatible with the surrounding area. Because it’s on the U.S. 1 corridor and near the railroad tracks, “I don’t see complications,” Jeffries said.
Rechter sees the 250 apartments bringing movie-goers, postal customers, and diners to the two side-by-side plazas’ many businesses.
“We’re creating a community there,” Rechter said. He also wants to narrow the road separating the plazas to reduce speeds. He would like to see on-street parking there as part of creating what he envisions as a “mini-city.”
Ideally, Kmart Corporate would reach out to Rechter to see about ending the lease early, so that redevelopment could get underway, but Rechter said he hasn’t heard from the company about the lease.
As it stands, the company continues to pay its rent and Rechter has time to fully develop his plans and get everything in place in anticipation prior to the lease expiring.
“There’s more to do,” Rechter said, besides just waiting for Kmart to step aside.
Rechter has made many improvements to Indian River Plaza, which sits north of 15th place on the west side of the highway, and Majestic Plaza, located south of 15th Place.
Several years ago, he built an attractive outbuilding along U. S. 1 that now is home to Moe’s Southwest Grill, Eden – The Salon and The Med Spa, and Vittorio’s Pizza. The building marks the northern end of the two plazas Rechter owns.
He has plans underway now for another new building along U.S. 1 that will house five or six businesses, including several restaurants, and have courtyard dining. Rechter expects to break ground on that project this summer and have the plaza occupied by summer 2021.
Indian River Plaza is also home to Energy Spa Salon and Tan, Tropical Smoothie Cafe, and Spiro’s Taverna, along with Treasure Coast Community Health, the U.S. Post Office depot, Salvation Army Thrift Store, a chiropractor, a salon, an Asian market, a health foods store, a computer repair shop, and a Spanish church. There is just one vacant storefront within Indian River Plaza, not counting Kmart.
On the other side of 15th Place – the road separating the two plazas – is Majestic Plaza, which is home to the Majestic 11 Theatre, as well Vero Bowl, Stix Billiards Club, Hurricane Grill and Wings, a fitness club, a couple of salons, an Army career center, and other assorted businesses, including a Checker’s fast-food restaurant on an out-parcel on U.S. 1.
Rechter said he’s unsure of the future of Checker’s at the plaza. The lease isn’t expiring any time soon, but Rechter is considering various redevelopment options that might necessitate Checker’s leaving.
The newest tenant coming to Majestic Plaza is mega-church Christ Fellowship, which holds services in the former Digital Domain building in Port St. Lucie and has satellite churches around Florida.
Another church, Christ Church of Vero Beach, occupied the space at the south end of Majestic Plaza for several years. After the church completed a free-standing sanctuary nearby and moved out, Rechter spruced up the facade and then got a call from Christ Fellowship inquiring about setting up a satellite church there.
“It’s looking sweet,” Rechter said of the interior build-out that is underway, which the church is responsible for. “We did the outside.”
The church expects to hold its first services within the next few weeks. Attempts to get a comment from Christ Fellowship about its decision to hold services at the Majestic Plaza were not successful. Already, the church hosts “pop up” services on select Sundays at the Emerson Center.
Rechter said refurbishing the plaza’s facades, adding outbuildings and choices he makes to renew or not renew leases to bring in new tenants are all part of his plan to elevate the two retail, restaurant and entertainment plazas that occupy a prominent stretch of U.S. 1 in the heart of Vero.
“We’re pulling everybody up,” he said, adding “we’re not done.”