Investors Buy Site for North Tulsa Grocery

[DowntownNow]

Published today...

INVESTORS BUY SITE FOR NORTH TULSA GROCERY

By ROBERT EVATT World Staff Writer
Published: 12/4/2008  12:00 AM
Last Modified: 12/4/2008  2:38 AM

A group of Tulsa investors has purchased the former Albertsons site on North Peoria Avenue, and it intends to aggressively pursue a new grocery store and additional development.

Omega Alpha Development purchased the 66,000-square-foot former store, an adjacent fuel center and the undeveloped 7.5 acres behind the building from Boise, Idaho-based Albertson's Inc. for $1.65 million, the Tulsa World learned Wednesday.

Jonathan Graber, president of Omega Alpha, said the organization was formed by several local investors with commercial and residential development experience for the sole purpose of buying and redeveloping the land.

However, he said, the process could take time because the group wants to find tenants that will actively work to improve the neighborhood rather than take advantage of residents.

"We're in it for the long term, and we want to find a tenant that's also in it for the long term," Graber said. "We want to avoid the typical tenants you find in some urban areas that fly in, take advantage of the customer and get out of the space as soon as possible, as soon as they make a quick buck."

Reuben Gant, president of the Greenwood Chamber of Commerce, said the land sale is welcome.

"Any news about a grocery store is good news," he said. "The presence of a viable grocery outlet will certainly serve the needs and demands of this community."

He said the lack of a nearby grocery, as well as a general lack of convenient shopping, create a gaping void for the area.

Omega Alpha is already in negotiations with several major grocery store chains, Graber said. The group is willing to offer "competitive" rents to help land a tenant.

He said the purchase will help clear the way for a new tenant for the former grocery store, which closed last year after Albertson's Inc. pulled out of Oklahoma.

"It seems that Albertsons was a roadblock for getting another store in there, since they were marketing the space as a package and weren't open to offering it for lease," Graber said.

The north Tulsa Albertsons was the last of the chain's stores to find a buyer.

Though finding a new grocery store is the chief priority of Omega Alpha, the group intends to develop every portion of the property, Graber said. In fact, the 1,900-square-foot convenience store and 10 fuel pumps may have a new tenant before the grocery building does.

"We've had active interest in that, and we expect we'll fill it first," Graber said.

After tenants are secured for the existing buildings, Omega Alpha will develop the vacant land, he said.

Last month, Katie Plohocky, a real estate agent with Walman Commercial Real Estate Services, asked the Tulsa Development Authority on Omega Alpha's behalf to extend a reversion clause in the land contract.

Albertson's Inc.'s 2001 contract to buy the land states that if development on the land around the store has not occurred by November 2009, the land would revert to the authority. The authority subsequently extended the terms by five years.

Graber said the group needs the additional time to undertake the most effective development possible for the neighborhood.

"We want to make sure we get tenants who are equally invested in the sustained development of the area; that takes time," he said. "The quick turnover from the previous store doesn't work for us or north Tulsa residents. We are willing to forgo short-term gains in order to find the right tenants — ones who are interested in a long-term investment in north Tulsa."

Graber said the existing buildings, which were constructed in 2003, are in excellent condition, and that Omega Alpha will soon conduct minor maintenance on the site.

Plohocky and Richard Monaghan and Ben Ganzkow of CB Richard Ellis/Oklahoma brokered the sale.

The only thing that bothers me about all this is some of the players involved and TW not providing exactly the entire story. This group is really the North Tulsa Economic Development Initiative with the Greenwood Community Development Corporation really as the background developer. Members include Ester Ogans, Michael Reed, Julius Pegues and Reuben Gant. Originally Bank of Oklahoma Community Development Corporation was the background developer but a change was necessitated and at that time, Paula-Bryant Ellis of BOK was working on the project. Now Bryant-Ellis and Pegues sit on the Tulsa Development Authority. Reuben Gant has a spot on the Tulsa Stadium Trust effectively forever and has yet to develop anything. City of Tulsa Real Estate official Leon Davis and Dwain Midget of the Working in Neighborhoods (both assist staffing for TDA) also worked in this group.

Not only did they get the 5 year extension, there is TEDC monies being applied to the tune of $1,000,000. They say the project will cost an estimated $5 million and that half of that money will go towards financing the business ventures that will go in the spaces. Im not sure but $5 million doesnt go that far for large scale development, half goes even less. Is there really a plan put together?

What's even funnier is that Gant acts like he's surprised as everyone!

[TheArtist]

Omega Alpha?  Best of luck to them but,,,Jeeze, what the frack kind of name is that? lol

[inteller]

quote:Originally posted by TheArtist

Omega Alpha?  Best of luck to them but,,,Jeeze, what the frack kind of name is that? lol

i know it is a popular name for black fraternities.

[Townsend]

quote:Originally posted by TheArtist

Omega Alpha?  Best of luck to them but,,,Jeeze, what the frack kind of name is that? lol

"I am the Alpha and the Omega"

I guess they think they are Jesus Christ

[inteller]

I remember before Harvest Foods bought Skaggs Skaggs had stores called "Skaggs Alpha Beta"  For some reason grocery stores like greek letters.

[ARGUS]

Hey Dorks...when you have 50+million$$$ who cares what you call yourself. We should all be thankfull there are funded excentrics out there in Tulsa that are willing to lay the buck on the barrel head.
Look for the gas station to start up first and the the store and then the out lying parcels.
THANK YOU FUNDED OUT OF THE BOX THINKERS IN TULSA!!!!!!!!!!!!!!!!!!!!!!
BOOMER SOONER!

[inteller]

we'll see who the dorks are when this place closes up a year after opening.  if they can keep the thuggish element out of their customer base they might just make it.

[nathanm]

quote:Originally posted by inteller

I remember before Harvest Foods bought Skaggs Skaggs had stores called "Skaggs Alpha Beta"  For some reason grocery stores like greek letters.

Alpha Beta was a chain that Skaggs bought.

[inteller]

quote:Originally posted by nathanm

quote:Originally posted by inteller

I remember before Harvest Foods bought Skaggs Skaggs had stores called "Skaggs Alpha Beta"  For some reason grocery stores like greek letters.

Alpha Beta was a chain that Skaggs bought.

oh well that makes it even more interesting.  i wonder if the grocery store will be called Omega Alpha.

[TheArtist]

quote:Originally posted by Townsend

quote:Originally posted by TheArtist

Omega Alpha?  Best of luck to them but,,,Jeeze, what the frack kind of name is that? lol

"I am the Alpha and the Omega"

I guess they think they are Jesus Christ

Well in this case, It would be the antichrist?

[Red Arrow]

I hope there will be a grocery store there. It will have to be something the local people can support. Evidently the Albertson's was not so. Then the local people will have to support it or it too will go away.

I read somewhere (TW or heard on TV) that there is a grocery store about 3 mi from there.  Not a big deal if you have a car.  Big deal if your transportation is your feet.  I am not insensitive to the situation but is this being made into a bigger deal than it really is?  Why was the Albertson's not supported enough for someone to pick it up when Albertson's left the area? People have to eat.  Where do people in the area buy their groceries?  Why there instead of the ex-Albertson's?  Anyone opening a store there will need the answers to these questions or they too will fail.