Target appears to be in the hunt for a possible Downtown location.
The discount retail chain has been scouting potential sites in the Golden Triangle, according to local real estate sources.
Among the locations Target has looked at is the former Macy’s/Kaufmann’s department store, where Philadelphia developer Core Realty is planning 120,000 square feet of retail space as part of a remake that includes 311 apartments and a 160-room hotel.
Just how serious Target is in Downtown is hard to gauge. Local developers have been trying for years to convince the retailer to open a store in the Golden Triangle, all to no avail.
A survey of residents and pedestrians conducted by the Pittsburgh Downtown Partnership last year found high demand for a discount/mass retail chain, with Target being No. 1 on the list.
In a statement, Liz Hancock, a Target spokeswoman, did not specifically say whether the retailer is considering a store Downtown.
“Target enjoys serving local guests at 18 stores across Pittsburgh and continuously explores possible locations for new stores in the area. We’re always looking for new opportunities to better serve our guests but we don’t have any stores news to share for Pittsburgh,” she said.
Herky Pollock, the CBRE executive vice president and one of the region’s top retail brokers, said a TargetExpress, a smaller store designed for urban locations, would be a good fit Downtown.
“Given the abundance of new residential that has been built, the 140,000 daytime population and the vibrancy that has been created, a newTargetExpress would be an ideal complement to the Downtown Pittsburgh landscape,” he said.
In October, Target opened 11 new smaller format stores in New York, Chicago, Los Angeles, Philadelphia and Minneapolis, bringing the total number of such outlets to 55.
At the time, it also announced that it would accelerate the pace of opening small format stores, zeroing in on dense urban and suburban areas and college campuses. It hoped to be operating more than 130 small format stores nationwide by the end of 2019.
The mini-Targets typically range from 12,000 to 80,000 square feet. That’s a lot smaller, for example, than the 145,000-square-foot East Liberty store that opened in 2011. Inventory at each store is tailored to the location and could include apparel, food, home goods, beauty products, and other items.
Mr. Pollock estimates that Target would need 20,000 to 25,000 square feet for a smaller format store Downtown.
That does not leave many potential options. One is the former Kaufmann’s/Macy’s store on Smithfield Street. Core has been marketing street level space and the second level for retail. So far, it has landed only one tenant, Waffles, INCaffeinated, which is taking 3,000 square feet.
Michael Samschick, Core’s president and CEO, has said he has letters of intent signed with three other retailers, although he has declined to identify them. He could not be reached for comment Thursday.
Another possible site could be the one-time Frank & Seder department store across the street.
Stark Enterprises, a Cleveland-based real estate development company, bought the empty seven-story building from Oxford Development Co. in January for $10.4 million.
It is planning about 160,000 square feet of office space on the upper floors and 60,000 square feet of retail on the first two floors. The building, like Macy’s/Kaufmann’s, takes up an entire block between Fifth and Forbes avenues.
Ezra Stark, Stark’s chief operating officer, had no comment when asked if there had been any contact with Target.
David Glickman, director of retail services for the Newmark Knight Frank real estate firm, said there also could be some other spaces on Smithfield or Wood streets that may be able to accommodate a 10,000- to 15,000-square-foot store.
McKnight Realty Partners had been trying to interest Target and other retailers in the 19,000-square-foot former Office Depot space in the old Gimbels building on Smithfield but could not land a deal. It is now leasing part of the space to the Port Authority.
If Target does end up Downtown, “it would be a wonderful amenity for existing residents and it would help to attract new residents having that amenity available to them,” Mr. Glickman said.
“It would make Downtown Pittsburgh more like a residential neighborhood. Most people in Pittsburgh have a Target close to where they live. Having all those products at Target pricing, it’s not only great for the people who work Downtown and students, people that are staying at hotels, but especially for our growing residential base,” he said.
“Right now, we basically just have drug stores Downtown. A Target would have more products.”
Mark Belko: mbelko@post-gazette.com or 412-263-1262.
First Published: December 1, 2017, 11:39 a.m.
