Hani Shafai, founder of Dream Design International of Rapid City, recently purchased Rapid City’s Northgate Shopping center, reports the Rapid City Journal. The shopping center was originally built in 1967 and its largest current tenant is Kmart.
The property was appraised at $4.85 million, though the purchase price has not been made public. Shafai also purchased an adjacent restaurant, originally built in 1954, which was appraised for $207,000. The developer plans to renovate and develop the properties. Sears Holdings Corporation, Kmart’s parent company, has suffered a number of closures in the years since Kmart and Sears merged in 2005. Shafai plans to honor the current lease with Kmart and work with the company to accommodate them while still renovating the building.
More of the shopping center is vacant, however, and Shafai is looking for new tenants. More new construction is also planned, and plans should be released in the next four to six months.
Read more about economic development in the Black Hills at the Black Hills Knowledge Network news archive.