Old “Kmart” Property Stands Vacant While Transformco Holds Its Lengthy Lease

Out of curiosity, I recently dug through the particulars of the old Kmart property in Millcreek Township, a suburb west of the City of Erie, PA. What I found may shed some light on the situation. A long-term lease is often cited as the reason this property stands largely vacant, but any lease can be broken, if the parties agree. . .

Transformco, the company that has the 99-year lease (through 2060s), is known for holding legacy properties “hostage,” arguing that its leases are its most valuable assets. It allegedly waits for the right market conditions to sublease to high-paying tenants. Obviously, high-paying tenants aren’t beating down their door for this Millcreek property. We can’t get a Trader Joe’s or a Whole Foods here, although there is great demand and either would be perfect for that site. The Kmart that was there from 1965 to 2019 did very well until recent years.

The Harborcreek Township Kmart, east of Erie, sat vacant after the store’s closure. Unlike the property in Millcreek Township, there was no active lease to deal with. Harborcreek considered purchasing the “eyesore” from New Jersey-based Pal Associates (also called Levco Associates, see below). The owner refused to sell and instead chose demolition, reducing the property to a cement slab by early 2024. The lot remains vacant despite attempts to attract developers.

Some options are for Millcreek Township to seize the property through eminent domain and compensate the owner, change the zoning, or cite the lessor or lessee for blight. All these options would probably land the Township in court, though. The Mall of America took its case all the way to the Supreme court and failed.

Millcreek isn’t alone. Other communities in Orlando, FL; Miami, FL; Concord, CA; Braintree, MA; El Paso, TX, and probably elsewhere, are all in the same boat. Livonia, MI, has a Sears that’s sat vacant since 2020. Read: “Why Is This Rotting Sears Still Standing?”

Some info on the “Kmart” Property 2839 West 26th Street in Millcreek Township, PA

• The Kmart brand (merged with Sears in 2005) is now part of Transformco (Transform SR Brands LLC), owned by Edward S. Lampert, former Sears chairman (See below). Transformco reportedly is in control of a 99-year lease on the property with Millcreek Realty Associates. Passport Realty manages the property.
• The property sold for $140,000 on 5/28/2010 (Book 2010 Page 012417) to Millcreek Realty Associates LTD.; One Wayne Hill, Wayne Mall, NJ, 07470. Seller: Urraro, Frank C. Ux Marianne c/o Al L. Levine, One Wayne Hill, Wayne Mall, NJ 07470. (There was once a Kmart at this site.)
• Dec. 1, 2021 – Millcreek Realty Associates asked Millcreek Township for a variance to reconstruct a new sign: https://www.millcreektownship.com/AgendaCenter/ViewFile/Agenda/_12012021-198
• David Steiger, representing Millcreek Realty Associates, appeared before Millcreek supervisors on Dec. 6, 2021, in a special session regarding new ordinances requiring businesses to be closer to the street with parking in the back, etc. https://www.youtube.com/watch?v=tkwtUWaMSZY 
• David Steiger is one of the principles listed on the IRS Form 990 for the A L Levine Trust in Wayne, NJ. Source: Grantmakers.IO
• Millcreek Realty Associates appears to be associated with the A L Levine Family Foundation or Trust.
• Erie Times-News, August 29, 1986, by Marsh, Spaeder, Bauer, Spaeder & Schaff: 
  • FICTITIOUS NAME NOTICE: 
    • Steiger-Erie Associates, One Wayne Hills Mall, Wayne, New Jersey.
    • Actual names: Carol Ann, Andrew R., Adam J. and David L. Steiger. Mailing address: 263 Manor Road, Ridgewood, NJ 07450
  • FICTITIOUS NAME NOTICE:
    • Levco-Erie Associates, One Wayne Hills Mall, Wayne, NJ. 
    • Actual names: Anthony R. Ullman & Carol Ann Steiger, trustees of the A L Levine Living Trust.
    • Levco is also known as Pal Associates (NJ). See Harborcreek, above.
• In 2023, Levco-Erie and Steiger-Erie Associates were listed as defendants in a sheriff’s sale against U.S. Bank National Association for both former Kmart properties. https://www.eriebar.com/uploads/journals/1616618902-eclj10-3-2014.pdf
• October 2024 – “Millcreek Gateway” sign was unveiled at the old Kmart property in Millcreek, sparking hope that something might be done with the property. . . https://www.yourerie.com/news/local-news/new-sign-unveiled-highlighting-the-millcreek-gateway/

Who is Edward S. (Eddie) Lampert?

Eddie Lampert is a billionaire hedge fund “titan” who many say is the responsible for running Sears (and Kmart) into the ground. According to David Dayden (The American Prospect), “Lampert and his hedge fund engaged in relentless financial engineering to suck out all the value from Sears and leave a desiccated husk. . .” When asked what the epitaph should be on Sears’ headstone, researcher Mark Cohen responded, “This business should not have suffered and died as it did with Eddie Lampert at its helm.” Columbia Business School. Still, Lampert and his wife, Kinga, are involved in various charities and community causes. Through their charitable foundations, they have made grants to educational, community, and humanitarian causes over the years. Perhaps they will soon do something good for communities like Millcreek Township, PA.

Contacts: 

• Transformco: 5407 Trillium Blvd., Hoffman Estates, IL 60192 (847) 286-2500
• Passport Realty (manages the property) https://www.1passport.com/contact
• Levco Associates is associated with Millcreek Realty Associates. They, along with the A L Levine Family Foundation/Trust, all use the Wayne Hills Mall address above. There is no website.
• Millcreek Supervisors:
  • James Bock: jbock@millcreektownship.com
  • Kim Clear: kclear@millcreektownship.com 
  • Kylie Morris: kmorris@millcreektownship.com 

Note: I am a blogger with a masters’ degree in English and a minor in business administration. I’ve done my best to sort through this subject. Please let me know if I have any facts wrong, and I will promptly address the matter.

5/6/2026: Inquiries to Transformco, Millcreek Realty, and Passport Realty were unanswered. I reached out to Transformco again and shared this post with them, inviting comments and corrections. No response.