A prime piece of Fort Collins real estate could serve as an excellent place for Sears to relocate, in the event that the retailer moves out of the Foothills mall.

We’re talking about the building that formerly housed Toys R Us, located on Bockman Drive just east of College Avenue in Fort Collins, which is under a covenant that restricts it to retail uses only. The 45,500-square-foot building was once under consideration for the expansion of Windsor’s Ice Energy, but the property would have had to be converted to light-industrial use.

Sears, as a retailer, would be a good fit as far as the covenant is concerned, and Sears and JC Penney, which is next door, are used to being neighbors. After all, JC Penney used to be a part of the mall as well.

Right now, Sears is engaging in conversations with Alberta Development Partners, the new owners of the mall, and the City of Fort Collins to see if a deal concerning Sears’ property can be reached.

Alberta has said that if it is not able to obtain Sears’ store, it will not spend the planned $100 million to redevelop the mall. If no agreement can be reached, the city will consider invoking eminent domain over the property.