Incredible Pizza, Springfield investors team for Tulsa store

by Eric Olson

SBJ Reporter

eolson@sbj.net

Springfield-based Incredible Pizza Co. is giving new life to a defunct big box retail location in Tulsa, Okla.

The second company-owned store is set to open this summer in a former K-Mart building in Tulsa, owner Rick Barsness said March 3. The new store is more than twice the size of Springfield's Incredible Pizza Co. and will feature new attractions bowling and paint ball, Barsness said. It is a $9 million project including acquisition, renovation and infill costs.

The new locale will carry the same games-and-pizza concept and family atmosphere.

"It'll be the 50s, same dcor, same design," Barsness said. "We're just adding a couple of new attractions."

Barsness acquired and renovated the former Hastings Books Music & Video, 2850 S. Campbell in Springfield, for $6 million; it opened in August 2002. Among its 42,000 square feet is indoor miniature golf, bumper cars, go-carts and video games, and 1950s-themed dining areas showing family classic movies and television shows. The Tulsa property is 96,000 square feet and is located across from Woodland Hills Mall, Barsness said.

Incredible Pizza Co. began offering franchises in December and had reserved the Tulsa market for Tulsa developer Jim Olson. But Barsness said Olson was unable to secure financing, so the deal shifted to Springfield real estate investors Leland and Audrey Sjule, who finalized a $3.4 million deal on the property Feb. 26 and will lease the space to Incredible Pizza Co. A 25-year lease is signed.

Leland Sjule said Business Brokers Unlimited in Springfield matched them to the property's owner, Kimco Realty out of Ohio. Business Brokers Unlimited received a finder's fee, but did not broker the deal, Sjule said.

Sjule is acquiring the property through a 1031 tax-deferred exchange, and expects to take title April 6 pending completion of $1 million in improvements. Sjule plans to invest $2.6 million in renovations, while Barsness plans to spend about $3 million for furniture, fixtures, equipment and games.

"The more I look into this deal, the better I like it," said Sjule, a retired Greyhound bus driver who has invested in real estate since the 1960s. "(Barsness) sure made the Springfield store work well."

According to Incredible Pizza Co. financials, first-year sales were $5.3 million in Springfield.

"(Barsness) likes Tulsa better than Springfield the demographics, the location. He just thinks it's going to be a real good deal for him. I think he's right," Sjule said, adding that 100,000 cars daily drive by the corner where Tulsa's Incredible Pizza Co. will be located.

"More than one person that is not associated with this deal has told me it is the No. 1 corner in Tulsa; 100,000 cars is a lot of cars," Sjule said.

Incredible Pizza Company also is entering Oklahoma City, Okla., and Houston through a 30-store franchise agreement worth $130 million in development with French Interests Inc. of Houston. Barsness said franchisee Robin French plans to begin construction in Oklahoma City and Houston within 30 days. CJ Stone Construction Company of Texas has the construction contract for all Incredible Pizza Co. stores, Barsness said.

Incredible Pizza Co. considered opening its second company-owned store in Kansas City, but Barsness said a local group now is looking at acquiring that franchise market; he would not disclose the interested party.

"We're not far enough along yet. It's getting close though," Barsness said.