Walmart Moves to Acquire Former Kmart Property in Eureka

URGENT UPDATE: Walmart is reportedly in advanced discussions to acquire the former Kmart property located at 4325 Broadway in Eureka, California. This development has led to the abrupt termination of Humboldt County’s prior plans to purchase the property, initially set in motion just two months ago.

Emails obtained through a Public Records Act request reveal Walmart reached an agreement on the purchase as of late yesterday afternoon in October 2023. John McNellis, a partner at McNellis Partners, which owns the property, confirmed the news in a communication with Eureka city staff. McNellis stated, “we came to terms with Walmart late yesterday afternoon,” but noted that “it will be a long way from that handshake to a closing,” underscoring the complexities ahead.

This property, a significant 8-acre site near the southern entrance of Eureka via U.S. 101, previously housed Papa & Barkley’s cannabis facility. The Humboldt County Board of Supervisors had recently approved a budget request for the property with aspirations to create a “One Stop Permitting Center” for the county’s planning department. However, plans for the county’s purchase were abruptly halted, with an agenda item for a conformance review removed from a recent Eureka Planning Commission meeting at the request of the county.

Emails suggest the decision to postpone was directly tied to Walmart’s pending agreement, indicating a shift in local development priorities. Although no official confirmation has been made regarding specific plans for a grocery store at the site, the discussions hint at a possible retail focus.

Walmart currently operates an anchor store on the northwest side of the Bayshore Mall in Eureka. In a statement, Walmart spokesperson Charles Crowson expressed, “We’re always looking for opportunities to better serve our customers and communities. We have no additional information to share at this time.”

The property itself consists of a 54,958 square foot retail building, constructed in 1988, and features 237 parking spaces. A real estate evaluation had previously appraised the market value of the property at $5,950,000 during discussions with the county.

As the community watches closely, the implications of Walmart’s potential acquisition are significant for local retail dynamics and employment opportunities. The next steps involve navigating the complexities of the purchasing process, which could impact future development in Eureka.

Keep an eye on this developing story as more information becomes available.