Spirit Valley Mall 215 North Central Avenue
Duluth, MN 55807
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Retail For Sale - Available Immediately
Just Listed: Significant Value Add or Redevelopment Opportunity | Spirit Valley Mall | Duluth, MN
Get in touch
Sean Doyle
SD
AJ Prins
AP
Matt Friday
MF
David Daly
DD
CBRE is pleased to exclusively offer for sale Spirit Valley Mall, a premier value-add retail investment opportunity located in Duluth, Minnesota. The offering consists of approximately 157,731 square feet of retail space positioned at one of the city’s primary gateway locations with exceptional visibility and direct access from Interstate 35. The asset presents investors with a rare opportunity to acquire a large-format retail property at a significant discount to replacement cost while executing a comprehensive leasing and repositioning strategy.
The property is comprised of two distinct components: an 86,479-square-foot former Kmart building and a 71,252-square-foot multi-tenant retail center. The former Kmart space offers exceptional flexibility for redevelopment, adaptive reuse, or a single large-format user, while the existing retail center is approximately 70% occupied by a diverse mix of local and national tenants, including Dollar Tree and the United States Postal Service. Overall property occupancy is approximately 30%, creating substantial upside through lease-up, tenant repositioning, redevelopment, or a combination of strategies designed to unlock long-term value.
Strategically located at the first Interstate 35 exit into Duluth along Central Avenue, the property benefits from outstanding regional accessibility, strong traffic exposure, and an established retail trade area. Surrounding big box retailers including Menards and Super One Foods generate consistent consumer traffic and reinforce the property’s position as a highly visible neighborhood retail destination. The combination of an irreplaceable location, significant vacant square footage, and flexible redevelopment potential creates multiple avenues for future value creation.
Duluth serves as the economic, healthcare, educational, and commercial center of northeastern Minnesota and the western Lake Superior region. As Minnesota’s fifth-largest city, Duluth has a population of approximately 88,000 residents and serves a much broader regional trade area extending throughout northern Minnesota, northern Wisconsin, and Michigan’s Upper Peninsula. The city’s diverse economy is anchored by healthcare, higher education, tourism, shipping, manufacturing, and government employment. Home to the Port of Duluth-Superior—the largest port on the Great Lakes and one of the nation’s busiest inland ports—as well as the University of Minnesota Duluth, The College of St. Scholastica, and Lake Superior College, Duluth continues to provide a stable and diversified economic foundation. Additionally, the city attracts approximately 6.7 million visitors annually, generating more than $780 million in direct visitor spending and further strengthening the long-term retail demand drivers supporting the investment.
The property is comprised of two distinct components: an 86,479-square-foot former Kmart building and a 71,252-square-foot multi-tenant retail center. The former Kmart space offers exceptional flexibility for redevelopment, adaptive reuse, or a single large-format user, while the existing retail center is approximately 70% occupied by a diverse mix of local and national tenants, including Dollar Tree and the United States Postal Service. Overall property occupancy is approximately 30%, creating substantial upside through lease-up, tenant repositioning, redevelopment, or a combination of strategies designed to unlock long-term value.
Strategically located at the first Interstate 35 exit into Duluth along Central Avenue, the property benefits from outstanding regional accessibility, strong traffic exposure, and an established retail trade area. Surrounding big box retailers including Menards and Super One Foods generate consistent consumer traffic and reinforce the property’s position as a highly visible neighborhood retail destination. The combination of an irreplaceable location, significant vacant square footage, and flexible redevelopment potential creates multiple avenues for future value creation.
Duluth serves as the economic, healthcare, educational, and commercial center of northeastern Minnesota and the western Lake Superior region. As Minnesota’s fifth-largest city, Duluth has a population of approximately 88,000 residents and serves a much broader regional trade area extending throughout northern Minnesota, northern Wisconsin, and Michigan’s Upper Peninsula. The city’s diverse economy is anchored by healthcare, higher education, tourism, shipping, manufacturing, and government employment. Home to the Port of Duluth-Superior—the largest port on the Great Lakes and one of the nation’s busiest inland ports—as well as the University of Minnesota Duluth, The College of St. Scholastica, and Lake Superior College, Duluth continues to provide a stable and diversified economic foundation. Additionally, the city attracts approximately 6.7 million visitors annually, generating more than $780 million in direct visitor spending and further strengthening the long-term retail demand drivers supporting the investment.
Spirit Valley Mall and the adjacent former Kmart site represent one of the
most significant redevelopment opportunities in western Duluth. Strategically
positioned within the triangular junction of Interstate 35, Central Avenue and
Grand Avenue, the Property occupies a prominent location within the heart of
the Spirit Valley commercial district. Importantly, the redevelopment opportunity
aligns directly with an active City of Duluth planning initiative. Spirit Valley is
currently the City’s only designated Core Investment Area with an active Core
Investment Area Plan, a planning framework specifically intended to guide
public and private investment, evaluate future redevelopment opportunities,
consider parcel consolidation and subdivision, identify infrastructure needs,
and explore resources capable of incentivizing private-sector investment. The
Property’s scale, contiguous ownership, existing commercial infrastructure
and exceptional access provide a unique opportunity for a new owner to
participate in the long-term transformation of one of Duluth’s most established
neighborhood commercial districts.
The former Kmart site has emerged as a central component of the City’s
vision for Spirit Valley. Following extensive community engagement, including
six community meetings and 272 public opinion surveys, the City specifically
identified a new vision for the Kmart property incorporating housing, businesses
and a public plaza as part of its March 2026 draft recommendations. Earlier
community engagement produced a similar result: addressing the Kmart
property ranked as the highest-priority issue at the December 2024 community
meeting, while subsequent business and property-owner workshops identified
redevelopment of the site into a mixed-use district, additional housing, new
businesses, public gathering areas and improved pedestrian connectivity as
potential catalysts for Spirit Valley. The City’s broader vision calls for a cohesive
commercial district characterized by active storefronts, walkable streets,
economic opportunity and public gathering spaces—creating a compelling
framework for redevelopment of the Property.
The opportunity is further enhanced by the Property’s approximately 10-acre scale, substantial existing parking fields, mixed-use commercial zoning and immediate proximity to Interstate 35. Rather than attempting to recreate the traditional big-box retail model formerly anchored by Kmart, redevelopment could introduce a higher-density combination of multifamily housing, neighborhood retail, restaurants, services, entertainment and public gathering space, creating additional activity throughout the day while supporting the existing Spirit Valley business district. The City’s consultant has specifically identified the importance of increasing density and activity, connecting existing commercial nodes, improving pedestrian circulation and creating an environment where visitors remain in the district longer. With the Spirit Valley Core Investment Area Plan scheduled for Planning Commission and City Council consideration in September 2026 and implementation beginning thereafter, the Property offers investors the unusual opportunity to acquire a large-scale redevelopment site at precisely the time public planning efforts are transitioning toward implementation.
most significant redevelopment opportunities in western Duluth. Strategically
positioned within the triangular junction of Interstate 35, Central Avenue and
Grand Avenue, the Property occupies a prominent location within the heart of
the Spirit Valley commercial district. Importantly, the redevelopment opportunity
aligns directly with an active City of Duluth planning initiative. Spirit Valley is
currently the City’s only designated Core Investment Area with an active Core
Investment Area Plan, a planning framework specifically intended to guide
public and private investment, evaluate future redevelopment opportunities,
consider parcel consolidation and subdivision, identify infrastructure needs,
and explore resources capable of incentivizing private-sector investment. The
Property’s scale, contiguous ownership, existing commercial infrastructure
and exceptional access provide a unique opportunity for a new owner to
participate in the long-term transformation of one of Duluth’s most established
neighborhood commercial districts.
The former Kmart site has emerged as a central component of the City’s
vision for Spirit Valley. Following extensive community engagement, including
six community meetings and 272 public opinion surveys, the City specifically
identified a new vision for the Kmart property incorporating housing, businesses
and a public plaza as part of its March 2026 draft recommendations. Earlier
community engagement produced a similar result: addressing the Kmart
property ranked as the highest-priority issue at the December 2024 community
meeting, while subsequent business and property-owner workshops identified
redevelopment of the site into a mixed-use district, additional housing, new
businesses, public gathering areas and improved pedestrian connectivity as
potential catalysts for Spirit Valley. The City’s broader vision calls for a cohesive
commercial district characterized by active storefronts, walkable streets,
economic opportunity and public gathering spaces—creating a compelling
framework for redevelopment of the Property.
The opportunity is further enhanced by the Property’s approximately 10-acre scale, substantial existing parking fields, mixed-use commercial zoning and immediate proximity to Interstate 35. Rather than attempting to recreate the traditional big-box retail model formerly anchored by Kmart, redevelopment could introduce a higher-density combination of multifamily housing, neighborhood retail, restaurants, services, entertainment and public gathering space, creating additional activity throughout the day while supporting the existing Spirit Valley business district. The City’s consultant has specifically identified the importance of increasing density and activity, connecting existing commercial nodes, improving pedestrian circulation and creating an environment where visitors remain in the district longer. With the Spirit Valley Core Investment Area Plan scheduled for Planning Commission and City Council consideration in September 2026 and implementation beginning thereafter, the Property offers investors the unusual opportunity to acquire a large-scale redevelopment site at precisely the time public planning efforts are transitioning toward implementation.
Sale Price
Contact Broker For Pricing
Get in touch
Sean Doyle
SD
AJ Prins
AP
Matt Friday
MF
David Daly
DD