Renovation work at the former Sears building at Gateway Mall is finally set to get underway.
The owner of the vacant store, Elm Creek Real Estate, filed a $4.5 million building permit last month for work that includes exterior renovation and partitioning of the building into multiple bays for future tenants, and resurfacing of the parking lot.
The 120,000-square-foot building at 6400 O St. has been vacant since March 2019, when the Sears store closed after the company had declared bankruptcy, ending a run of more than 90 years in Lincoln, including nearly 50 years at Gateway.
Elm Creek bought the building in December 2019, along with the former Red Lobster and a vacant lot, all of which were owned by Sears. The purchase price was $6.5 million.
In a January letter to the Lincoln-Lancaster County Planning Department seeking to amend the current use permit, Elm Creek said it plans to demolish the former Sears Auto service building and build a new building there of up to 16,000 square feet that will have a mixture of retail and restaurant uses.
John Dewhurst, president of commercial real estate firm Hard Corner LLC, who is the leasing agent for the property, declined to say whether any leases have been signed.
"The tenants typically announce themselves," he said. Dewhurst previously said the plan is to fill the redeveloped building with national retail and restaurant tenants.
A building permit filed May 27 indicates Lululemon Athletica plans to open a store at SouthPointe Pavilions at 27th Street and Pine Lake Road.
The $625,000 permit does not identify the specific space in the mall where renovations are taking place, and officials from RED Development, the mall's owner, declined to comment.
According to SouthPointe's website, it has nine vacant spaces, ranging in size from less than 2,000 square feet to more than 10,000 square feet.
Lululemon, which sells high-end athletic and leisure wear for men, women and children, has had a store in downtown Lincoln at 14th and P streets since November 2019. Before that, it had a temporary store at Gateway Mall from August 2018-May 2019.
Officials from the company did not respond to a request for comment.
A $4.5 million building permit has been filed for renovations at the former Sears at Gateway Mall, which is being redeveloped into a mixed-use development with both retail and restaurant users.