The former Sears store at Lakeland Square Mall is back on the market.
Plans to tear it down and build 320 luxury apartments are still on the table, according to Jordan Desnick, head of real estate for the Flacks Group, which owns the property. But that scenario is not a sure thing.
The building has been vacant since 2018, following Sears’ Chapter 11 bankruptcy.
“We are still planning to build the apartments,” Desnick said. However, the Miami-based investment group would sell if it received a high enough purchase offer. “We put the site for sale to see how the market responds, but we are working with the city of Lakeland to work on the site plan.”
Commercial real estate firm Saunders Ralston Dantzler initially listed the space for lease in December, but then offered it for sale when it received inquiries about purchasing the property, according to the firm’s senior advisor, David Hungerford.
“They originally listed the building for lease, because it will take a year or more for them to break ground on their apartment project. When they listed it with us for lease, we received a number of purchase inquiries. The owners fully intend to move forward with their development, but would sell at a number that is comparable with their expected return on development,” Hungerford said.
“The owners fully intend to move forward with their development, but would sell at a number that is comparable with their expected return on development.”
David Hungerford, Senior Advisor with Sunders Ralston Dantzler
The sales price is $10.9 million — more than double the $4 million Flacks paid in September 2023. The ad states the building could be redeveloped into apartments or self-storage with a zoning change.
“Nestled just west of the transformative Wedgewood Golf Course Redevelopment project, set to introduce hundreds of new residential and multifamily units, this property offers exceptional visibility and access,” the ad states.
The ad promotes its connectivity to the mall and calls it a prime location between Tampa and Orlando.
“The building’s location and vacancy open the door to a range of potential uses, including entertainment, pickleball, or retail,” it states.
Leasing is also still an option.
Companies interested in leasing the building would have to pay $10 per square foot per year. At that rate, with the building being 155,000 square feet, leasing it in its entirety would run about $1.5 million a year. The building sits on 11.5 acres and was built in 1988.
“Tenants can lease a portion. We realize it is unlikely we will find a tenant that needs 150,000 square feet, so the owner is open to leasing less than the entire building,” Hungerford said.
The Polk County Property Appraiser’s website indicates Nottinghill Lakeland LLC bought the property, listed as 3800 Highway 98 N, in September 2023. Michael Flacks, the CEO of the Flacks Group, is the manager of the Nottinghill Lakeland LLC, according to Sunbiz.
Desnick said the Flacks Group hopes to announce its next steps either in late summer or fall of this year.
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