PAC Trust Approves $5.5M Sale Of Downtown Parking Lot To Developer Promising Grocery Store

Sep 21, 2021

Updated Sept. 23, 12:03 p.m. with new project renderings.  

A real estate deal that would bring a full-service grocery store to downtown Tulsa appears back on track. 

The Performing Arts Center Trust has voted to approve a $5.5 million sale of a parking lot at Third Street and Cincinnati Avenue to Indiana-based Flaherty & Collins. The developer envisions a mixed-use project dubbed The Annex, anchored by a 20,000-square foot grocery store.

When Flaherty & Collins first started pursuing the purchase about five years ago, Reasor’s was attached to the project. The grocer later pulled out of the deal, and a new supermarket brand has yet to be announced. 

The PAC has owned the parking lot since the late 1970s. CEO Mark Frie expects closing on the parking lot sale in early 2022.

"I want people to know that we're still getting parking back because they have to build a garage within this development, but it's going to activate the corner directly across from the PAC, which I'm excited about, with hotel, retail, restaurants. So, I think it'll be definitely a positive for us," Frie said.

Plans for The Annex also call for a 100-room hotel, 240 apartments and a 450-space parking garage. Before the COVID-19 pandemic, the PAC made about $150,000 a year in revenue from the parking lot, money that went toward programming.

"We're not magically $5.5 million richer because we are losing the revenue on the parking lot, but we will invest that wisely so that we can maintain a revenue stream off that asset," Frie said.

Flaherty & Collins has not announced a timeline for construction.