P.Terry's to close flagship store at Capital Plaza due to I-35 expansion

Published June 18, 2026 11:41 PM CDT

P. Terry's will be closing its flagship store at the end of June due to the expansion of I-35.

What they're saying:

Patrick Terry, founder and CEO, shared the news in a video posted to social media.

The store, located at US 290 and I-35 in the Capital Plaza shopping center, will close on June 28 and has been in operation for about 10 years, says Terry.

"It's a really sad day for the P. Terry's family," Terry said in the video. "We have been so proud to be here. We think this building is iconic. We love our location. We've been able to serve the people in Central Texas at this location for so long, but we must go and there's not anything we can do about it."

Dig deeper:

The closure is part of the I-35 Capital Express Central Project, which spans from Lady Bird Lake up to US 290.

The project has been cut up into segments, and the segment that directly impacts this P. Terry's store is the University section from US 290 to MLK Boulevard.

TxDOT says this segment is slated to begin construction in 2027 with completion anticipated in 2033, weather permitting. 

This part of the project would add two high-occupancy-vehicle (HOV) lanes in both directions along I-35, and:

  • Reconstruct east-west crossings at Manor Road, Dean Keeton, 32nd Street, 38 ½ Street, and Wilshire Boulevard
  • Reconstruct the Airport Boulevard intersection
  • Add pedestrian-only bridge at Capital Plaza

According to a schematic of the planned construction, the P. Terry's location would be impacted by the new proposed frontage road and cross streets south of Reinli Street.

Below is the TxDOT schematic zoomed in to show where the current store is.

A zoomed in image of the proposed University segment of the I-35 Capital Express Central project, with the P. Terry's outlined in a black box. (TxDOT)

The Source: Information in this report comes from TxDOT, Patrick Terry and previous reporting by FOX 7 Austin

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