For generations of shoppers, the former Kaufmann’s/Macy’s department store was the go-to place Downtown. Could one of the country’s top retailers be on the verge of bringing back some of that magic?
The Target discount department store chain has been eyeing the iconic Smithfield Street building for a possible store, according to multiple sources.
Michael Samschick, president and CEO of Core Realty, the building’s owner, had no comment.
In a statement, Liz Hancock, a Target spokeswoman, said the retailer is “evaluating opportunities to reach additional guests in Pittsburgh,” but did not say where.
“At Target, we continuously explore possible locations for new stores. We are currently focused on new store growth with our small-format stores, which are smaller than our general merchandise Target stores and are located in dense urban and suburban neighborhoods as well as near college campuses,” she said.
“I can tell you we are evaluating opportunities to reach additional guests in Pittsburgh, but at this time, we’re not at a point where we can share any new store plans.”
Core is in the process of selling the landmark Downtown property, which it acquired for $15 million in 2015, to Florida-based Fontainebleau Development.
Since the sale has yet to be finalized, Core remains the building’s owner and is still pursuing possible retail tenants.
In an interview Wednesday, Mr. Samschick promised some “powerful announcements” regarding retail tenants in the coming weeks but declined to be more specific.
He said he has been in talks with “national players” regarding the building’s 100,000 square feet of retail space, which is largely vacant at this point.
The buzz about Minneapolis-based Target has reached such a crescendo over the last several months that even people getting haircuts Downtown have been hearing that the retailer is coming.
However, its website for stores opening this year, in 2020, and beyond does not list a Pittsburgh location.
Target has seemed to be the retailer of choice in the rumor mill for some time now. It was said to be on the hunt for possible space Downtown, including the Kaufmann’s/Macy’s redevelopment, two years ago.
At one point, 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.
A survey of Downtown residents and pedestrians conducted by the Pittsburgh Downtown Partnership three years ago found a high demand for a discount/mass retail chain, with Target being number one on the list.
In recent years, Target has been moving into smaller format stores, particularly in urban areas and near college campuses.
The mini-Targets typically range from 12,000 to 80,000 square feet. That’s a lot smaller than the 145,000-square-foot East Liberty Target. Inventory at each store is tailored to the location and could include apparel, food, home goods, beauty products, and other items.
John Valentine, executive director of the Pittsburgh Downtown Community Development Corp., said retail Downtown has been taking steps forward with the opening of several new boutiques. But he added that there’s a need for an anchor like Target.
“I do know there’s been talks with Target and if we can get Target to come that would be great. But we don’t know when or if that would happen,” he said.
Although Core has struggled to complete the Kaufmann’s/Macy’s redevelopment, known as Kaufmann’s Grand on Fifth, the work now appears to be moving into the final stages. The 160-room Even Hotel opened recently and residents have started to move into some of the 311 planned apartments. Mr. Samschick said Wednesday only one floor of apartments remains to be finished.
The only retail tenant to open so far is the Waffles, INCaffeinated restaurant on the Fifth Avenue side of the building. When completed, the overall redevelopment is expected to total more than $100 million.
Mark Belko: mbelko@post-gazette.com or 412-263-1262.
Updated at 5:57 p.m. on Oct. 31, 2019
First Published: October 31, 2019, 6:13 p.m.