Southeast Denver’s Tamarac Square will be razed and replaced by a Target store and other retailers, Developers Diversified Realty Corp. announced today.

The Beachwood, Ohio-based firm characterized Tamarac Square as a “non-income producing parcel” that will be sold to Target for construction of the store.

Developers Diversified said it intends to redevelop adjacent retail space to accommodate “demand for additional high-quality retailers.”

The company, which owns and manages approximately 520 retail properties around the country, said it is also razing the Terrell Plaza Shopping Center in San Antonio and selling that property to Target.

“The redevelopment of the two non-income producing assets into prime shopping centers is a perfect example of the continued execution of our redevelopment strategy,” said Paul Freddo, Developers Diversified’s senior executive vice president of leasing and development.

Freddo said that Tamarac Square is currently 90 percent vacant.

The redevelopment will provide Target access to a market exceeding 720,000 people within a seven-mile area, said Freddo.

He said that upon completion of the 135,000-square-foot Target store and the renovation of the adjacent 33,000 square-foot convenience center, the project will be 98 percent leased.

The combined gross investment for the Denver and San Antonio projects is $40 million, according to the company.

Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com.