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Kitsap Mall officials cant talk about it and Kohls wont talk about it. But documents filed with the county show that on March 31 Kohls Department Store, Inc., purchased the Mervyns building at the Kitsap Mall in Silverdale from MDS Realty II LLC for $14 million.
Theres been much speculation as to what would replace Mervyns at the mall since the California-based chain announced in January that it would be closing all its Washington and Oregon stores by early 2007. Kohls, a Wisconsin-based department store chain, was a popular choice, as Kohls announced last summer that it planned to open about 200 stores in 2006 and 2007, including entry into the Pacific Northwest market. Its first Puget Sound-area store, in Vancouver, Washington, opened in April.
Kohls expansion into the area will finally give local shoppers the opportunity to visit a Kohls store after having been exposed to extensive Kohls TV advertisements over the last few years. While the ads helped Kohls build name recognition, they have also frustrated Washington consumers, who until now would have had to drive hundreds of miles to get to the nearest Kohls store.
Kitsap Mall officials are barred from comment on any new store developments when it comes to properties, like the Mervyns building and Gottschalks, which arent actually owned by the mall. They are kept up-to-date on whats happening, but must wait until the property owners give them the go-ahead before they can make any official announcements.
Leanne Furman, a spokesperson for Mervyns LLC, didnt have any direct knowledge of the sale, explaining that when Target sold Mervyns in 2004 the company essentially broke up into two pieces: Mervyns LLC, which continues to manage the people and the merchandise; and the Mervyns properties, which were sold to an investment consortium, with which MDS Realty II appears to be associated. In September 2004 MDS Realty II paid just over $9 million for Mervyns Silverdale property.
We dont own any of our own properties anymore, said Furman, indicating that Mervyns LLC leases back the Mervyns store properties from the investment consortium.
Because of this, she continued, we werent involved in any of the discussions, about property sales.
To Furmans knowledge all the Mervyns stores that are closing, including the Silverdale location, are still on schedule to close around January 2007.
Our leases are until the end of fall, she said. We anticipate those stores will be open through December.
Kohls has also purchased the Redmond Mervyns store site near the end of State Route 520 for $23 million, according to a recent report in the Puget Sound Business Journal. The Silverdale and Redmond sites are reportedly two of 13 Mervyns stores in the Pacific Northwest that Kohls is buying to facilitate its entry into Washington and Oregon.
A spokesperson from Kohls would not comment on Kohls purchase of the Silverdale location, or when Kitsap County might expect to see the retailer open for business at the mall. She noted that new store openings were not usually announced to the public until two to four weeks before the opening. |