O’Connor buys former Albertson’s building

Grand Island developer Ray O'Connor has bought the former Albertson's supermarket building, the former Albertson's Gas Express gas station and the land beneath both.

"It's good real estate," O'Connor said of the property in the Eagle Run Shopping Center.

"It's a prime area of town right across from a regional shopping center and the most sought-after retail area in the community," he said.

It's so sought after that O'Connor has already signed a contract with a national home furnishing store that will open Dec. 15 in the north half of the former Albertson's building at 1215 Allen Drive. That store comprises 30,903 square feet.

"A public announcement identifying the national retailer will be made by their corporate office in the near future," O'Connor said.

The south half of the building is being split into two commercial properties for lease. One totals 28,600 square feet with a loading dock and the other is 2,535 square feet. Both are available, although the smaller location is under negotiation, he said.

Bosselman Inc. has signed a long-term lease to operate a Pump & Pantry convenience store in the former Albertson's Gas Express building at 1235 Allen Drive.

The Pump & Pantry will open "Nov. 1 or before," O'Connor said.

O'Connor Enterprises had been trying for more than a year to acquire the properties because the emptiness of the buildings had bothered O'Connor.

"It's a detraction and not good for a community," he said. "Getting it filled shows a progressive community."

Records indicate that O'Connor paid $3 million for the properties.

The bulk of the money went to buy the land, which was owned by the Eagle Run developer -- the Robert M. Allen Family Limited Partnership of Hastings.

Allen had leased the land to Albertson's, which built its store there in 1999 and had a grand opening in October 2000.

The grocery store closed as an Albertson's in 2004, but became a Bag 'N Save until 2005.

BNS Property III of Omaha still owned the buildings until O'Connor's successful negotiation with BNS to buy the buildings and its agreement with Allen to buy the land.

It was the construction of a new Walgreen's pharmacy at Eagle Run's southwest corner of Webb Road and 13th Street that made O'Connor's purchase possible.

O'Connor said the former grocery store had a deed restriction on the property that no other pharmacy would be located within the Eagle Run Shopping Center.

But when Walgreen's wanted the corner property, Allen began talking with BNS to change lease agreements and ultimately the sale came about.

Comment was not available Wednesday from Walgreen's corporate offices on when that new pharmacy would open, but staff did confirm that it will be a second location, with the current Walgreen's location at Second and Broadwell remaining.

Interior demolition of the former grocery location started two weeks ago -- the same day as closing, O'Connor said. Some interior decorations from the grocery store were donated to local school theater programs.

The exterior will be revamped with a new color palette. The red roof will be changed to a pumpkin color, which will be repeated on the building front along with beige and dark green. Landscaping for the building and its 280-stall parking lot will be completely redone.

Earlier this year, O'Connor said there was about 250,000 square feet of commercial space -- including two former groceries -- along the Highway 281 corridor that was vacant and in need of being "recycled."

With the completion of O'Connor's Albertson's project, both former grocery stores will be utilized.

"The location of this asset along the U.S. 281 corridor presents a great opportunity to bring a new business to our fine community or relocate a current Grand Island business," he said.