Residential Real Estate : Development News

Construction will begin this summer on a $25 million building with market-rate apartments, a 247-car garage and retail.

Developer Chesapeake Realty Partners expects the project to be completed in the spring of 2014. The Owings Mills company also spearheaded the apartment complex across the street at 1901 Patapsco St.

Plans for the as-yet unnamed project at 2 East Wells St. call for 153 apartments, including 96 efficiencies and 57 one-and-two bedroom units. Renters can expect to pay, on average, about $1,800 per month. 

Currently, there are warehouses and offices on the lot, which also includes 1800 and 1802 Patapsco Streets. Mayers says he believes this is an opportunity to “create a new version of an existing neighborhood,” with good walkability and easy highway access.

The project also calls for 6,000 square feet of retail, says Chesapeake Realty President Jonathan Mayers. Facing East Wells Street, future retail tenants will serve the local community, and could include a bagel and coffee shop, nail salon, or a small local grocery, Mayers says.

“There’s really few commercial or industrial buildings left, and everything else in the neighborhood is more or less rowhomes or new apartment buildings,” Mayer says.

Demand for apartments remains strong throughout the city as many apartment complexes report nearly 100 percent occupancy rates. 

“We feel there’s a dearth of housing options in the south Baltimore market,” says Josh Fidler, Chesapeake’s chief operating officer. He says the area holds a number of assets, including Riverside Park, the headquarters for the National Federation of the Blind and the former Pabst brewery that is set to reopen this summer.

Mayers says the garage will be large enough to offer secure parking for tenants and visitors, with additional spaces available for lease. Plans also call for widening the alleys around the new building, making parking and access easier for the existing rowhomes on South Charles, Barney and Patapsco Streets.
 
Sources: Jonathan Mayers and Josh Fidler; Chesapeake Realty Partners
Writer: Amy Landsman
 
 
 
 
 

Prudential Homesale YWGC Realty is adding a new office in Fells Point and expanding its Timonium office in a new location by Jan. 1. It’s hiring dozens of agents to staff both locations as the housing market slowly recovers.
 
About a third of the Timonium space’s 5,900-square feet will become the Real Estate Education Center of Maryland, where Prudential will teach continuing education and realty licensing classes. Prudential Broker and General Manager Scott Lederer says it expects to gain state approval for the school within 30 days.
 
“As the real estate market improves, we’re poised to take full advantage of it,” Lederer says.
 
The real estate firm is closing its existing Timonium office at 108 West Timonium Road and moving around the corner, to the old Hobby Shop location in the Fairgrounds Plaza at 53 West Aylesbury Road.
 
The 24 agents who currently work in Timonium will all make the move to the new Fairgrounds Center location, says Prudential Broker and General Manager Scott Lederer. Prudential is hiring as 10 new agents in Timonium and could hire as many as another 10 additional down the road.
 
The 3,250-square-foot office at 1500 Thames St. will open mid-December and is the former site of Pad Furniture. Pad is now housed within the Su Casa Furniture location in Ellicott City.
 
A dozen current Prudential agents are ready to move in when the office opens and six to 10 new hires will join thereafter, Lederer says.
 
When fully staffed, the Fells Point office will accommodate up to 50 agents, which Lederer expects will happen within three months.
 
Prudential Homesale YWGC was created in February, when Yerman, Witman, Gaines and Conklin Realty merged with the Homesale Services Group out of Pennsylvania. Homesale YCGC is affiliated with Prudential Realty.
 
 
Source: Scott Lederer, Broker, General Manager, Prudential Homesale YWGC Realty.       
Writer: Amy Landsman, [email protected]
 

A Montgomery County developer has submitted plans this month to the Howard County Planning Board to build up to 180 single-family homes in Ellicott City.

The upscale custom homes at the Estates at Patapsco Park would be located just next to Route 29 and Old Frederick Road. Homes would range between 2,500 and 6,000 square feet.

Simon Rosenberg, a partner with Silver Spring developer Patapsco Park Associates, says he expects that it will take at least a year to 18 months to go through the county approval process. He says he doesn’t have a timeframe for when construction would begin if and when the county approves the plan.

The new homes are an extension of the developer’s first venture in the Mount Hebron neighborhood, Patapsco Park Estates. Properties in the existing 144-home community cost between $500,000 and $1 million.

Rosenberg says he doesn’t yet know how much the new homes would cost. It depends on what the market demands.

“The baby hasn’t been born and everyone has a lot of questions,” Rosenberg says.

Residents who attended a recent Mount Hebron/Orchards Community Association meeting expressed concerns that additional homes would exacerbate traffic woes along Old Frederick Road. Rosenberg says his firm is now undertaking a traffic study to determine the homes' impact.

Though the housing market is currently in the doldrums, Rosenberg says he believes there will be a demand for new homes in the future.

“Housing is not going to stop. It’s just a mater of how fast you can sell.”

Writer: Julekha Dash; [email protected]
Source: Simon Rosenberg, Patapsco Park Associates 

Seeking to fill a demand for housing in Baltimore, apartment developers hope to offer luxury apartments to professionals who want to live in Mount Vernon or downtown. 
 
Working on behalf of a group of private investors, high-end residential developer  Zahlco Properties plans to renovate up to six apartment buildings with 100 total units in Mount Vernon and downtown by next summer, says Yonah Zahler, CEO of Pikesville's Zahlco Properties. 
 
The company hopes to create a new venture, Urban Living by Zahlco, to cater to young professionals who work and want to live downtown. 
 
The first building, a 10,000-square-foot double row house at 16 E. Biddle St. in Mount Vernon, is slated to open for lease in October. The funding group behind the venture has invested $1.3 million to renovate the home and has several million set aside to develop additional properties, Zahler says. He wouldn't specify where the other buildings are located and exactly how much he will spend on them. 

Zahler believes there is a demand for high-end housing in Mount Vernon and that the area has always attracted residents.
 
"Mount Vernon has a unique style of living. It has a Manhattan type of feel that will only grow by the population and workers increasing. Retail will follow," Zahler says.

Maybe it's not New York, but apartment rental rates in Baltimore are keeping up with bigger cities. Baltimore renters paid an average of $1,684 last month, a 12 percent increase compared with July 2011, according to housing market research firm Zillow Inc. 

Zahler's apartments will be one to two bedrooms costing no more than $1,400 and $2,000 a month, respectively.

 
Writer: Alexandra Wilding, [email protected]
Source: Yonah Zahler, CEO of Zahlco Properties.
 

A 140-apartment assisted and independent living facility broke ground last month in Severna Park and the developer of the 140,000-square-foot building plans to open it October of next year.
 
Brightview Senior Living at 473 Jumpers Hold Rd. is a $16 million project developed by the Shelter Group, which owns and operates Brightview housing. The company operates nine additional facilities in Maryland.
 
The apartments will be evenly divided between assisted living and independent living housing, and will include 26 units devoted to memory care, says Shelter Senior Development Director Andrew Teeters.
 
Teeters says there's an incredible need for senior communities in Severna Park as there are no new senior living communities in the area. With an aging population, the company plans to target people over 75 who have raised families in the community and want to live locally.
 
Some of the features of the facility include a fitness center, a cafe and pub with regular happy hours, a computer center and library with activity rooms. Additional staff such as nurses will be on site to support residents.
 
Brightview provides market-rate senior housing, and rates in their facilities average approximately $2,500 per month.
 
Source: Andrew Teeters, senior development director for The Shelter Group
Writer: Alexandra Wilding, [email protected]
 

Construction on the massive Marketplace at Fells Point project will close sidewalks and parking spaces of the westside of the 600 block of South Broadway Street for the next year as the developer works to preserve building facades in the neighborhood. 
 
The renovation of building facades or exteriors is part of the development plan to preserve the streetscape that has been there for 100 years, says Drew Dolben, senior vice president for Massachusetts developer the Dolben Co. Inc..
 
The developer is also constructing an entirely new building as part of the $40 million Marketplace at Fells Point project that broke ground in May. The project will eventually include 159 apartment units and more than 27,000 square-feet of retail space. Dolben acquired the rights to build the housing and retail portion of the project from Dave Holmes earlier this year. 
 
Dolben expects for tenants and residents to begin moving into the development within the next 15 months with the entire project completed in 20 months.
 
The smaller building on the eastside of Broadway will open first and the building on the westside will follow shortly after, Dolben says.
 
Meanwhile, in  Anne Arundel County, the Dolben Co. plans to complete its Village at Odenton Station before the end of September. 

The company has signed a lease with a dry cleaner and in currently in negotiations with a restaurant at the location. The company plans to have a mix of retail similar to a traditional main street including a coffee shop, a nail salon, a hair stylist, a spa  and a total of three restaurants.
 
Source: Drew Dolben, senior vice president for the Dolben Co. Inc. 
Writer: Alexandra Wilding, [email protected]

The state has created a community land trust for the Park Heights area of Baltimore City to ensure affordable housing in an area that is undergoing redevelopment.

The Maryland Department of Assessments and Taxation approved the community land trust in April, the first in the state, according to Will J. Hanna II, president and CEO of The New Park Heights Community Development Corp. Inc. The CDC  will administer the trust. The community land trust designates a specific area in the Park Heights community for development of affordable housing for 99 years. Area nonprofits and the CDC are working to redevelop the area with new services and buildings while a new workforce training program is seeking to lower the area's high unemployment. 
 
Two property owners have donated 100 vacant houses within the community land trust boundaries to the nonprofit to begin the affordable housing effort.
 
Hanna says he is negotiating with two investors who are interested in buying and redeveloping 50 houses each. He declined to provide names. He is also talking to two banks, SunTrust and Wells Fargo, about closing and development costs.
 
Hanna says the nonprofit, which was founded in 1999, expects to have a purchase commitment by next month.
 
 The federal Housing and Urban Development department’s home program determines the selling price for houses in the land trust. Currently, that price is set at $80,000 to $125,000 per property, a rate based on median income and affordability of the housing stock in the community at the time.
 
Hanna says the community land trust area stretches from Seven Mile Lane to Druid Park Drive. The 100 vacant houses are scattered within this broad area. He estimates the average value of each property at $40,000, with some of the houses little more than shells.
 
He figures the average cost of redeveloping the houses will be $60,000 each. The nonprofit will retain ownership of the land, and intends to charge ground rent.
 
Hanna talks about the tax advantage to the property-owners who donated the houses, home-buyers and private investors who redevelop them.
 
By donating the houses to the community land trust, the property-owners received a tax exemption. Whoever buys a house in the land trust will be exempt from state taxes during the life of the land trust.
 
For investors who buy the properties to redevelop, 80 percent of the development cost is not taxable. Moreover, the nonprofit can issue IRS certificates to reduce tax liability.
 
Source: Will J. Hanna II, The New Park Heights Community Development Corp., Inc.
Writer: Barbara Pash

A local development company plans to demolish existing warehouse space and build a new approximately $15 million, 57-unit apartment complex in Canton.
 
Plans for the four-story apartment with a sub-level parking garage at 1202 and 1220 S. East Ave. will go before the city's zoning appeals board June 26 for approval.
 
Ellicott City's Canton East LLC, based anticipates the start of demolition of the existing vacant buildings before the end of June and for construction to begin before the end of September. The apartment complex would then open March 2014, says manager of Canton East LLC, Ross Taylor.
 
The 56,000-square-foot building would include studio, one-bedroom and two-bedroom apartments for rent. Square-footage on each apartment runs from 600 square-feet to 1,200 square-feet. Taylor says apartment prices have  yet to be determined, but the rents will be competitively priced with other rental buildings in the area.

Taylor says that rents for the apartments will be comparable to complexes like The Eden and Spinnaker Bay Apartments. The average price for a studio at these locations is $1,730 per month, the average price for a one-bedroom is $2,100 per month, and two-bedroom apartments average $2,800 per month. 

Taylor grew up in Baltimore and has lived in the Canton area for the past five years.  While on walks with his dog, he kept seeing the industrial buildings in the heart of a residential community and decided they were out of place and that he would redevelop the location. 
 
The units will wrap around a central courtyard that will include patio space with a grill, outdoor seating, and a dog run. Other amenities include a fitness and business center that will have a conference room, computer kiosk, coffee bar and kitchenette.
 
Taylor hopes to take advantage of the continued development in Canton including the upcoming Canton Crossing and the already popular Canton Square. He hopes to attract people who want to live in the area including employees at Johns Hopkins and those who work downtown.
 
This project will be Canton East LLC's first large project in Baltimore as the company works primarily out of Howard County. Taylor describes Canton East LLC as a family real estate company that develops commercial and residential properties.
 
 
Source: Ross Taylor, manager, Canton East LLC
Writer: Alexandra Wilding, [email protected]

Baltimore County officials have approved preliminary plans for an office, shopping and residential complex in Owings Mills that aims to be a smaller version of Quarry Lake.
 
It’s one of several major developments in the works for Owings Mills. Others include David S. Brown Enterprises' Metro Centre, a $65 million makeover of the Owings Mills Mall and a Wegmans-anchored retail complex called Foundry Row.

Steven Koren, of Columbia’s Koren Development Co., is building Delight Quarry on approximately 120 acres in northwest Baltimore County, at the intersection of Franklin Boulevard and Nicodemus Road.
 
Delight Quarry's residential part calls for 75 single-family houses, 66 townhouses and 108-units of active adult condominiums. In addition, there will be 20,000-square feet of retail space and 136,500-square feet of office space.
 
Delight Quarry will follow the pattern of the Quarry Lake development, with buildings clustered around a quarry that is being allowed to fill in and become a lake.
 
Koren says he doesn’t yet know what the development will cost. He says he is not at the stage where he can give prices for the housing or potential tenants for the retail and office spaces. Those decisions will be made in conjunction with the residential and commercial builders, although neither has been chosen at this point. He also doesn't have a timeframe yet for construction. 

“We don’t do this [development] in a vacuum,” Koren says of housing prices and tenant leases. “It depends on market reception.”
 
Glenn Barnes, president of the Reisterstown Improvement Association and a manager of the Long and Foster Reisterstown real estate office, says questions were raised at a community meeting about the viability of the office and retail portions given the number of vacant commercial buildings on Reisterstown Road.
 
Koren says he is aware of the downturn in housing and other sectors. “Every decision is made in concert with the market and how we proceed in a productive manner. We have to work within the constraints of the market,” he says.
 
Baltimore County officials have approved the development plan and Koren is currently finalizing the engineering plans for construction. When he does, he will return to the county for approval of a final plan.


Sources: Steven Koren, Koren Development Co.; Glenn Barnes, president, Reisterstown Improvement Association, and manager, Long and Foster Reisterstown.
Writer: Barbara Pash

A local developer plans to spend $1.2 million to open a three-story, 12-unit apartment building in Hampden by the end of the year.
 
Eric Dashner, owner of Finer Remodeling in Roland Park, will renovate a 3,000 square-foot property in Hampden that dates back to the 1880s. He hopes to construct an 8,000-square-foot addition, pending approval from the city's zoning board. Dashner expects to break ground within four to five months on the property, located just blocks from The Rotunda. 
 
The developer says he hopes that the apartments will appeal to young, single professionals who want to live in a neighborhood that offers great restaurants and live music in a friendly, tight-knit community. The apartment market is one of the few bright spots in real estate these days as some former homeowners who can't get loans are renting instead of buying.
 
Dashner says he plans to restore the facade of the building at 3849 Roland Ave. and anticipates renovating the remaining shell of the building to create one and two-bedroom apartments. The rental prices of the market-rate apartments are expected to run from $900 to $1100 per month, Dashner says. The plans also call for 14 off-street parking spaces.
 
The developer says he left the plans "loose" so as not to be pigeonholed into a single idea, and will meet Tuesday evening with the Hampden Community Council for their input.
 
Dashner has renovated two other rental-housing units in Hampden, one at 3649 Keswick Rd. and another on Dellwood Avenue.

Source: Eric Dashner, owner of Finer Remodeling, Inc.
Writer: Alexandra Wilding

A Massachusetts firm has acquired the rights to develop the retail and apartment component of Marketplace at Fells Point, a $40 million project that is now slated to break ground April 1.

Drew Dolben, senior vice president for the Dolben Co. Inc., says he has acquired the rights for the massive urban redevelopment plan from South Broadway Properties LLC's Dave Holmes. The Dolben Co. has a regional office in Odenton. 

Holmes says he is still involved with the project and is leading a $5 million renovation of the Broadway Market. The recession made financing more complicated and the company realized it needed a partner to see the project get built, he says. With a partner leading the retail and apartment building, South Broadway Properties can focus on the restoration of the market.

The developers of the Marketplace at Fells Point plan to transform the 600 block of South Broadway Street into a "vibrant gateway to historic Fells Point." The transformation will include shops, restaurants and a pedestrian plaza. Streetscape improvements will be a public-private partnership with the city spearheading the design and planning of a pedestrian space called the Square at Fells Point. Planning for that space is currently underway with construction expected to start later this year, Holmes says. 

The extensive project, in the works for several years, also received some federal stimulus funding. But construction on the project, initially slated for January 2011, has been delayed. The group revised it's original plans that included office space and a parking garage after the recession to simply retail and residential space. These changes lowered the total cost of the project.

The company is waiting on the city to issue building permits for the project at 600 S. Broadway and expects the development to take between 18 to 20 months to complete.
 
The project is expected to include 159 apartment units and over 27,000 square-feet of retail space. The company is working with CBRE Group, Inc. to attract food outlets and boutique retailers to lease space.
 
The apartments will be a mixture of one and two bedroom units, and the rents will be consistent with other prices in the area, Dolben says.
 
"We think the Fells Point neighborhood is one of the best residential addresses in Baltimore and a very vibrant area," Dolben says.
 
By acquiring the Marketplace at Fell's Point project, the company wanted to expand its portfolio in the Washington-Baltimore corridor.
 
The company currently has two projects in construction in Maryland, the Village at Odenton Station and the View at Mill Run in Owings Mills. Between developments in Virginia, Maryland and the New England area, the company maintains 11,000 apartment units, Dolben says.
 
Writer: Allie Wilding
Sources: Drew Dolben, Dolben Co. Inc.; Dave Holmes, South Broadway Properties LLC 

South Baltimore could see a new townhouse development if an area developer's plans get approval from Baltimore's zoning board.
 
A planning consulting firm is working with a local developer who plans to build townhouses near Key Highway in Riverside. The townhouses are expected to carry price tags around $400,000.

Baltimore's AB Associates submitted plans for zoning approval from the city for 14 three-story townhouses with rooftop decks, and most with two-car garages at the intersection of Harvey and Lawrence Streets bordering Locust Point. The site is one block from the Baltimore Museum of Industry. 
 
The plans will go before the city's Board of Municipal and Zoning Appeals Feb. 7.
 
If approved, construction could begin on the townhouses this year, and hit the market early next year, says Al Berry, principal of AB Associates. Berry says he's working on behalf of developer Ray Jackson, who owns the property.
 
Berry believes the location near the proposed townhouses just off Key Highway and close to the exit for I-95 will appeal to many homebuyers. Additionally, Berry expects the price point to suit buyers looking to move into the city.
 
"The neighborhood has always been strong for development and housing value," Barry says. He says he doesn't yet know the development cost. 
 
The land where the proposed townhouses sit belonged to the late Vincent Rallo, owner of Rallo's Restaurant. The planned site served as a parking lot for Rallo's Restaurant.
 
The homes will be designed modern industrial style and will all face onto an extensively landscaped interior court, says Berry.
 
Architectural work for the proposed project is being handled by SETO Architects LLC in Mt. Vernon, Berry sats.
 
Writer: Alexandra Wilding
Source: Al Berry, principal of AB Associates
 

An Illinois restaurant company will be dishing out contemporary American cuisine in Harbor East next year.

Townhouse Kitchen and Wine Bar will open at the Eden apartment building at 777 S. Eden St. during the first quarter of 2012, says Margaret Meginniss, a principal at retail brokerage firm Sierra Mid-Atlantic. The area is home to a bevy of high-end condos and swanky restaurants and, soon, a Four Seasons hotel.

Based in Glenview, Ill., Restaurants-America Consulting Group Inc. operates Townhouse and six other restaurant concepts. The 8,000-square-foot Baltimore restaurant will be Restaurants-America’s fourth Townhouse. The others are located in Deerfield and Chicago, Ill., and Sherman Oaks, Calif.

Menu items at the Chicago restaurant include jerk red snapper ($16), halibut piccata ($22), and penne diablo ($13). Ahi tacos ($11), jalapeno bacon-wrapped shrimp ($12) and surf & turf sliders ($12) are listed under its small plates.

“It’s a contemporary concept that’s very sexy,” Meginniss says.

And it’s possible that the restaurant firm, which operates about 15 eateries to date, will open another in the Greater Baltimore area. Sierra represents Restaurants-America nationally.

Midtown, Bluepoint, Red Star Tavern, One North, the Grillroom, and Primebar are Restaurants-America’s other concepts.


Writer: Julekha Dash
Source: Margaret Meginniss, Sierra

A husband-and-wife team have launched a local arm of a national paint franchise with plans to hire about 10 workers.

Rick and Dori Eisenacher hope to get Fresh Coat Painters of Baltimore up and running in one month and are eyeing both residential and commercial clients, Rick Eisenacher says.

The couple works out of their home and serve White Marsh, Fullerton, Kingsville, Perry Hall, Bel Air, Forest Hill, and surrounding communities.

Though the real estate market is still wobbly, Eisenacher says he hopes he can still pull in $250,000 in revenue in one year by attending home shows, job fairs, and meeting with realtors. The business required a $40,000 upfront investment, about one-third of the amount required of other home-improvement franchises he considered.

So why sign on to a franchise to paint homes and offices? Eisenacher says the advantage is getting support to run the business, including software that provides estimates for paint jobs and marketing assistance.

Based in Cincinnati, Ohio, Fresh Coat Painters serves clients in more than 100 cities.


Writer: Julekha Dash
Source: Rick Eisenacher

In cooperation with One Green Home at a Time, a home rehabilitation company building energy-efficient homes in East Baltimore, the Pat Tillman Foundation brought over 90 military veterans to the Oliver neighborhood for a clean-up day on July 11. Pulling weeds, clearing debris, and straightening fences, "We pretty much covered the majority of the Oliver community," says Earl Johnson, Executive Director of One Green Home at a Time and himself an Army veteran.

An estimated 200 more volunteers from local non-profit organizations The 6th Branch, Baltimore BORN, One Green Home, Baltimore Love Project, and the Veteran Artist Program joined nearly 100 Tillman Military Scholars in their day of service coordinated with the Pat Tillman Legacy Summit, which is named for the former college and professional football star who was killed by friendly fire while serving as an Army Ranger in Afghanistan.

One Green Home at a Time and its financial arm, Bridge Private Lending, purchased 40 homes in the Oliver neighborhood from the city in May and is currently coordinating funds for complete renovation. The 3-window-wide rowhomes are eligible for historic tax credits and will be standardized to share energy-efficient floor plans and other design features.


Writer: Sam Hopkins
Source: Earl Johnson, One Green Home at a Time