The redevelopment of the Kmart in Rehoboth Beach has begun.

The property, 19563 Coastal Highway, is owned by Seritage Growth Properties. The Maryland-based real estate investment trust has 266 properties, containing approximately 42 million square feet of building space, in 49 states and Puerto Rico. The Kmart in Rehoboth is the company’s only Delaware property.

According to the company’s 2017 first-quarter operating results, published May 4, the 56,700-square-foot property is being redeveloped to include a Christmas Tree Shops and That!, and a PetSmart. The report says the project is expected to be substantially completed by the first quarter of 2018.

The Rehoboth redevelopment project is one of 38 the company is undertaking and one of 17 that are estimated to cost under $10 million. Of the remaining projects, 16 are in the $10 million to $20 million range and five are over $20 million.