Former Kmart finally getting new tenant

The Gold's Gym that closed on Topsy Lane about two weeks ago is opening a new location inside a portion of the former Kmart in north Carson City.

The gym, 3456 N. Carson St., will open a temporary 4,000-square-foot gym that will include space for workout equipment, personal training and an office. It opens today in the southeast corner of the building, in what used to be Little Caesars Pizza.

It's the first business expected to fill the long-vacant 170,000-square-foot building at North Town Plaza shopping center. The center has struggled ever since Kmart declared bankruptcy in 2003 and closed its Carson City location.

Jiangson Duke, LLC., of Reno bought the building for $1.5 million in June from a Dallas-based equity firm, which bought it for $6.7 million in 2006.

Meanwhile, the gym is going to refurbish a 10,000-square-foot portion in the northeast corner of the building. The permanent gym is expected to open in March 2011, said co-owner Julie Stargardter on Tuesday.

Stargardter and co-owner Chad O'Kelley said they plan to include a juice bar, space for classes and eventually expand the gym by another 10,000 square feet with racquetball and basketball courts and a two-lane lap pool, among other features.

"It's going to be beautiful," said John Mulder, the Realtor who handled the deal. "It's going to be the Taj Mahal of gyms."

The Gold's Gym opened in the Topsy Lane shopping center about four years ago at 3790 U.S. Highway 395. Stargardter and O'Kelley bought it in February.

"We've been looking at places off and on for awhile," said Stargardter, who declined to comment on what prompted the move from the Douglas County shopping center.

Regarding the abrupt move, O'Kelley and Stargardter said they asked members for their contact information before closing the gym and removing all of its equipment about two weeks ago. O'Kelley said they had to choose between raising rates or moving to a new building, ultimately choosing the latter.

"And we had to make that decision in five days," he said, adding the gym will not impose fees for members who cancel their membership now that the gym is about five miles to the north.

Current Gold's Gym members will be able to use the new facility starting today.