The long-quiet Kmart on Western Boulevard is back in the spotlight, this time with the action shifting from the parking lot to the courtroom. On March 10, 2026, an anchor tenant that walked away from a lease filed suit tied to the long-planned redevelopment, pulling Raleigh developer CityPlat into a legal fight over the project. The case hits just as CityPlat is renovating the former big-box into a mixed-use center and trying to keep near-term leasing and temporary activations on track.
According to Triangle Business Journal, the lawsuit was filed March 10 by an anchor tenant that backed out of an agreement tied to CityPlat’s project on Western Boulevard. Reporter Kate Tracy details the basic claims in the complaint and includes a developer rendering that shows what CityPlat hopes the revamped site will eventually become.
The 12-acre property at 4500 Western Blvd. contains roughly a 118,000-square-foot former Kmart that CityPlat bought for about $14 million as part of a broader redevelopment push, according to Axios Raleigh. Raleigh City Council has moved to clear the way for denser development on the parcel, and the developer has spent heavily on interim upgrades while planning a larger project. Oak Street Commercial Real Estate reports CityPlat has invested roughly $7 million in façade, utilities and parking work while marketing 10,000 to 40,000-square-foot suites…