Residential Real Estate : Development News

A Baltimore developer is pitching an apartment complex at a prime Inner Harbor spot that had previously been eyed for condos, a hotel, and offices.

J. Joseph Clarke, of J.J. Clarke Enterprises , is plotting a nearly 264-unit apartment tower for 1 Light St. A Baltimore City design panel is reviewing Clarke's plans for the 15-story unit, which would contain a three-level parking garage with 200 spaces and two retail spots totaling 12,000 square feet.

Clarke told the panel that the market demand is no longer there for an office tower, though he hasn't ruled out a hotel for the spot. The apartment market is one of the bright spots in the commercial real estate market. Apartment rents are rising while vacancies are declining in nearly every city tracked by research firm Reis Inc.

"There's a push to have more mixed use downtown," says Robert Quilter, an architect with the city's planning department.

Kona Grill, Sullivan's Steakhouse, and several hotels have livened nighttime activity in downtown in recent years. But filling the spot at 1 Light St. with full-time residents would add to the neighborhood's vibrancy, Quilter says.

"It's like a hole in the donut," he says of the property, which is a parking lot now. "It could contribute to downtown better than it is."


Writer: Julekha Dash
Source: Robert Quilter, Baltimore City

Infrastructure work has begun on Turf Valley Town Square, a retail and restaurant complex in Ellicott City anchored by a Harris Teeter grocery store to open next spring.

Developed by Greenberg Gibbons Commercial Corp., the open-air shopping center will contain features similar to the developer's Hunt Valley Towne Centre, with a "Main Street," landscaped gardens, piped-in music, and an outdoor fireplace.

Located near Route 70 and Marriottsville Road, the 150,000-square-foot shopping center is near Turf Valley resort and Turf Valley Overlook homes.

"We are absolutely looking forward to it being an important part of the Turf Valley community," says Gina Ellrich, a spokeswoman for Turf Valley owners Mangione Enterprises LLC. "It's an extension of what's there."

The grading and sewer installation has been completed and construction will begin in the fall, Ellrich says.

Turf Valley Town Square will contain a number of smaller specialty shops. Neither Ellrich nor Tom Fitzpatrick of Greenberg Gibbons would name other shops slated for the development.

Anchored by a Wegmans, Hunt Valley Towne Centre's shops include California Pizza Kitchen, Best Buy, Carraba's Italian Grill, White House/Black Market, and Ann Taylor Loft.

The Turf Valley site will also include a separate office complex, 160,000 square feet of office space and 150 townhomes and 192 condominiums built by the Keelty Co. of Stevenson.


Writer: Julekha Dash
Source: Gina Ellrich, Ellrich Communications

Yerman Witman Gaines and Conklin Realty LLC is opening its eighth office in Severn, and plans to expand its presence in Bel Air, as company leaders hope to cash in on the residential growth expected from the Base Realignment and Closure.

Located at the Severn Square Shopping Center, the office will open May 18 with 12 agents staffing the firm, says William Yerman, CEO of parent company the Strata Group. The 3,000-square-foot office will employ 50 realtors within a year.

The office is across from Fort George G. Meade, where the federal government is transferring nearly 6,000 jobs from Fort Monmouth, N.J. by 2015.

"It's an underserved area in an important time," Yerman says of the Severn market.

Growth from BRAC is also the reason why the company wants to expand its 1,500-square-foot Bel Air office. By the end of summer, the company will open a satellite location in Fells Point or Canton to replace the Canton office whose lease expired earlier this month.

The real estate firm recently opened an office at McHenry Row, a residential, shopping and office complex in Baltimore City's Locust Point neighborhood.

Headquartered in Baltimore, the Strata group has offices in Baltimore, Carroll, Harford and Anne Arundel Counties. Its businesses include a mortgage firm, a title company and a financial services firm. It was founded in 2007.


Writer: Julekha Dash
Source: William Yerman, the Strata Group

Remember Nike's message to folks who put off getting in shape?

Live Baltimore, a nonprofit that promotes home buying in Baltimore City, doesn't want home buyers to procrastinate, either, in its newest ad campaign, which starts later this month.

The message is "buy now," Live Baltimore Executive Director Anna Custer says.

With interest rates low, a depressed housing market, and cash incentives for buying in the city, purchasing a Baltimore home has never been more affordable, she says.

"We want to give people a reason to get off their hind legs," Custer says. "Stop saying someday," I'll buy a house.

The $40,000 multimedia ad campaign will include ads in DC Metro stations, Google pay-per-click ads, Facebook, and other social media sites. You will also see a viral campaign involving "flash mobs," or the idea that random people gather at a public location to chant, cheer, dance, or perform some other predetermined act.

Live Baltimore's goal is to reach the creative class of young, hip professionals who will view home buying in Baltimore an investment in their future.

Still, getting people to buy a home in Baltimore is fraught with challenges given that perceptions of the city are mired in images of "the Wire," and the latest census data shows that the city lost residents over the last decade.

Custer says she hopes the campaign will challenge people's perceptions and stir up conversations on everything from neighborhoods to food in Baltimore.

One key component of the campaign includes taking iconic signs throughout the city and using them to form words. So, for instance, the "O" from the Domino Sugar sign might be used to spell Baltimore. Folks who can guess where the shots were taken get a prize.

Writer: Julekha Dash
Source: Anna Custer, Live Baltimore

Downtown Towson is getting eco-friendly townhomes as the area undergoes revitalization.

Bozzuto Homes has broken ground on 121 townhomes between Towsontown Boulevard and East Burke Avenue. Homes at Towson Green will start in the low $300s and feature up to four bedrooms. A sales center will open next month.

The townhomes will be built to achieve a Silver level certification from the National Association of Home Builders. Green features will include sustainable design, construction, and finishes, along with Energy Star appliances. The homes will be certified by Energy Star, a government sponsored program that helps residents and businesses become more energy efficient.

The community will include a rain garden with aquatic plants that will treat storm water runoff.

Bozzuto is working with the Chesapeake Fund, a nonprofit organization that works to reduce the amount of nitrogen and phosphorous flowing into local streams and waterways by evaluating the development's output. The real estate firm is also offering eco-friendly landscape maintenance advice to homeowners.

Towson Green lies within Baltimore County's Towson commercial revitalization district, and as a result, qualifies for a property tax credit. Under this program, homeowners will benefit from a reduction in their real estate tax bills for a period of five to ten years.

Towson Green is one of several new residential developments to open in the Baltimore County town. The Palisades of Towson, an 18-story LEED certified apartment tower, opened in the fall. Owned by Southern Management Corp., the Palisades includes a green roof, bamboo floors, and bicycle racks.

In recent years, downtown Towson has experienced an influx of new and redevelopment projects including:

- The $27 million Towson Center City project, site of the former Investment Building which is under interior demolition, and when completed in early 2012 will bring up to 500 new workers to the area;
- Redevelopment of two large vacated retail properties into the newly opened full-service Safeway at York and Fairmont Roads; and,
- The 110,000 square foot expansion of Towson Town Center, which includes a specialty retail wing with Tiffany's and Burberry.

Writer:Julekha Dash
Source: Bozzuto Group

As part of its ongoing effort to reduce homelessness across the country, the U.S. Housing and Urban Development (HUD) agency has awarded more than $44.2 million in funding to keep the doors of 208 local homeless assistance programs in Maryland open and operating in 2011. The grants announced last week form a critical foundation for the Obama Administration's Opening Doors strategy, the nation's first comprehensive plan to prevent and end homelessness.

"There is a tremendous need on our streets and in our shelters among those experiencing both long-term homelessness as well as families confronting a sudden economic crisis," says HUD Secretary Shaun Donovan. "These grants are the life blood for thousands of local housing and service programs that are doing the heavy lifting to meet President Obama's goal of ending homelessness."

Last September, HUD announced that it would renew funding through HUD's Continuum of Care programs to existing local programs as quickly as possible to prevent any interruption in federal assistance. HUD will award funds to new projects later in the year.

HUD's Continuum of Care grants provide permanent and transitional housing to homeless persons as well as services including job training, health care, mental health counseling, substance abuse treatment and child care. Continuum of Care grants are awarded competitively to local programs to meet the needs of their homeless clients. These grants fund a wide variety of programs from street outreach and assessment programs to transitional and permanent housing for homeless persons and families.

Source: U.S. Housing and Urban Development
Writer: Walaika Haskins

Students in College Park will get to rest their heads in a new, eco-friendly apartment complex.

Built by Columbia's Star Global Ventures, LEED-certified the Enclave will open in the spring with 94 apartment units and 369 beds in a seven-story tower. The building's first floor consists of a lobby, 10,000 square feet of retail place, and visitor parking.

The building consists of a separate parking garage for students, and a study lounge with computers and study equipment, fitness center, bike storage, and courtyard.

Construction on the six-story second phase, with another 369 beds, will begin in 2012.

Designed by Hord Coplan Macht, the Enclave's eco-friendly features include:
• Location near public transportation and within walking and biking distance of shopping areas;
• Roof that reduces energy consumption and pollutant emission;
• Energy-star rated appliances, lighting and windows;
• Use of regionally sourced construction materials; and,
• Ongoing recycling programs.

Located at 8700 Baltimore Ave., the University of Maryland building is financed by a consortium of credit unions led by the State Employee's Credit Union.

The apartments include two bedroom, two bathrooms at 850 square feet to four bedrooms, four bathrooms at 1,200 square feet.

Writer: Julekha Dash
Source: Nisha Majmudar, Star Global Ventures

Federal Capital Partners (FCP), a Washington, DC-based real estate investment company, has purchased The Munsey, an 18-story high-rise apartment building in Baltimore's Central Business District at 7 N. Calvert St., for a reported $13.75 million.

"We are actively seeking new investments throughout Baltimore as the fundamentals continue to improve," says Alex Marshall, FCP Managing Partner. "The Munsey fits well with FCP's investment strategy and will be an important part of our portfolio as it is recapitalized and remarketed."

The Munsey is a landmark building that includes 146 apartments and 4,000 sq. ft. of ground floor retail space along with 109 underground parking spaces. The property, located a few blocks north of the Inner Harbor, was constructed in 1911 by newspaper icon Frank Munsey as an office building and was, at the time, the tallest office building in Baltimore.

The building was converted to apartments in 2003 and was an instrumental part of the resurgence of Baltimore's downtown as a live-work-play environment. FCP plans moderate improvements to common areas and amenity space.

The sale was facilitated by the receiver, Gray & Associates, LLC and was brokered by CB Richard Ellis. Wells Fargo provided acquisition financing for FCP.

Source: Federal Captial Partners
Writer: Walaika Haskins

Home buyers interested in getting a home in the area surrounding Johns Hopkins Hospital have 50,000 potential reasons to do so. That's because of a $50,000 grant being offered as part of the Eastside Early Home Buyers Grant Program (EEGP).

The grant may be applied toward the purchase of designated newly constructed or rehabilitated homes in the East Baltimore Development, Inc. (EBDI) footprint, the Townes at Eager, or the Green Rehab Homes.

Baltimore Community Lending is responsible for the program. According to the organization, the purpose of the EEGP grant is to generate a group of pioneering buyers to purchase homes in the new East Baltimore community by providing a financial incentive for prospective buyers of the designated new homes.

"This incentive is an awesome way to incent a Hopkins employee or someone who works closeby in the downtown area with a really affordable home purchase. We hope it serves to jumpstart home buying in the area and build on the positive work being done by EBDI. It is one of the more gracious incentives out there � no income restriction on the buyer and the funds are totally forgiven after 10 years," says Anna Custer, executive director of Live Baltimore, an organization dedicated to promoting Baltimore as a great place to live.

Source: Anna Custer
Writer: Walaika Haskins

After nearly six years of planning, developer Dave Holmes' $50 million retail and residential development in Fells Point will break ground in January.

The retail portion of the project consists of about half fashion boutiques that target women, along the lines of yoga wear company Lululemon Athletica that recently opened a showroom in Fells Point.

"We are in the final stages of wrapping up a lot of requirements before we put a shovel in the ground," Holmes says.

Holmes is looking forward to finally getting the project underway after "dozens" of start dates.

"Which each passing start date we get better at closing in on a timeframe," Homes says.

The approximately 30,000-square-foot of retail will also include children's clothing shops and boutiques selling shoes, purses and other fashion accessories. Holmes and partner Daniel Winner also expect a shop selling lotions and makeup along the lines of the Body Shop. (But no, they're not talking to the Body Shop, Holmes says).
 
The site will also contain 160 residences, mostly one-bedroom apartments for rent designed to appeal to young professionals who want to live in a bustling part of the city and be close to Interstates 95 and 83.

Holmes says rental rates for the apartments have not yet been set. But since the project is a couple of blocks from the water, the rental rates won't be quite as high as tony waterfront apartments like the Eden in Harbor East, where a 900-square-foot one-bedroom with water views can cost around $2,000 per month.

The Marketplace at Fells Point includes a renovation of the Broadway Market food stalls, totaling around 20,000 square feet.

Writer: Julekha Dash
Source: Dave Holmes, Marketplace at Fells Point

Baltimore City officials closed a deal on March 10, with Recreation Pier Developers, LLC, for the sale of the Fells Point Recreation Pier. The deal marks a significant step in the Fells Point Recreation Pier redevelopment project. The transaction will require pier restoration, which is expected to be an $8.8 million dollar expense. 

When complete, the site will house a 132-room Aloft-brand hotel with a second floor restaurant. The entire project will be valued in excess of $35 million and will ultimately increase the tax base of the City through sales tax, room tax, and real and personal tax revenue. The project will also create a new job base for the City.

"The closing of the sales transaction marks the beginning of the Fells Point Recreation Pier redevelopment project," says Mayor Stephanie Rawlings-Blake. "The restoration of this historic pier will stimulate the development of new businesses that will greatly enrich the community."

The next step is for Moran Towing Corporation, the sole remaining pier tenant, to relocate to its new facility on S. Clinton Street in Canton. The move is expected to occur by May 2010, allowing Recreational Pier Developers, LLC, to begin restoration of the site.

Built in 1914, the Fells Point Recreation Pier was once used for social and educational gatherings. A ballroom on the second floor of the Head House was used for weddings and dances, as well as for basketball and soccer games. More recently, the site has been used as a
filming location for the television series "Homicide: Life on the Streets" and two movies, including "Step Up." As part of the pier restoration, the developers will replace many of the piles that are sinking into the water. The project will receive federal and state historic tax credits from the U.S. National Park Service and the Maryland Historical Trust.

"Baltimore Housing recognizes the unique character of Recreation Pier and its historic significance to Fells Point, Baltimore City and the State of Maryland," says Housing Commissioner Paul Graziano. "We have been working for years to identify a viable and appropriate reuse for this legendary landmark. With the recent closing of the sales transaction with the developers, I am pleased that we can now move forward with the project."

Source: Housing Authority of Baltimore City
Writer: Walaika Haskins

Baltimore's Community Development Block Grant (CDBG) First-Time Homebuyer's Program received $300,000 in renewed funding in February. The CDBG's gain is a windfall for 60 first-time homebuyers in Baltimore. With the additional $300,000 in funding, the income-eligible families will receive $5,000 in home buying assistance.

Baltimore Housing's Office of Homeownership established the first-time buyer program in August 2009. At the start of the program, $300,000 was available for down payment and settlement assistance to low-income families. Within two months, those funds were exhausted. 

"We're pleased to offer the Community Development Block Grant First-Time Homebuyer's Program to help make the dream of owning a home possible for income-eligible families in Baltimore," says Mayor Stephanie Rawlings-Blake. "We're equally excited to announce that affordable housing stock is still available for purchase in many of Baltimore's 220 neighborhoods."

Homebuyers can use the incentive funds in combination with an $8,000 First-Time Home Buyers Federal Tax Credit for a total of $13,000 in home buying support. In November 2009, the Worker, Homeownership, and Business Assistance Act of 2009 extended the tax credit for first time homebuyers purchasing a primary home between January 1, 2009 and April 30, 2010, with settlement by July 1, 2010. Additionally, active City employees may qualify for $3,000 in home buying incentive funds through the Baltimore City Employee Homeownership Program.

"This window of combined opportunities is time sensitive. First-time homebuyers are encouraged to take advantage of available City homeownership incentives while federal help is also being offered," says Baltimore Housing Commissioner Paul Graziano.

Housing counseling from a City- approved housing counseling agency is a requirement for this and all City homeownership programs. Approved housing counseling agencies and income eligibility criteria are listed on the Baltimore Housing website.

Source: Housing Authority of Baltimore City
Writer: Walaika Haskins

An apartment complex in Hanover is wrapping up construction on 270 units that will be added to the Elms at Stoney Run Village at the end of the month.

Marketers for the building are pitching the Elms' proximity to Arundel Mills mall and Baltimore/Washington International Thurgood Marshall Airport, Property Manager Cheryl Henley says. The complex at 7581 Stoney Run Dr. is about 75 percent full and will have a total of 386 apartments when construction is finished.

The Elms contains one, two and three-bedroom units. The price ranges from $1,340 for a one bedroom to $2,105 for a three bedroom. The sizes range from 830 to 1,650 square feet with amenities that include a swimming pool, fitness center and hiking trails.

Elm Street Development, the complex's McLean, Va., developer, picked the area because of the expected job growth in Anne Arundel County, Elm Street Project Manager Lauren Bower says.

"We chose the neighborhood because it is growing fast," Bower says. "A lot of people are moving to the area."

The Pentagon's Base Realignment and Closure plan, or BRAC, is expected to bring nearly 6,000 jobs to Fort George G. Meade in 2011.

Henley says the company likes Anne Arundel County's demographics. The county's population has grown nearly 5 percent between 2000 and 2008, according to the U.S. Census Bureau, and it has a median household income of around $83,000.

Elm Street's other properties include the Eden, a 270-unit apartment building in Baltimore's Harbor East neighborhood.

Sources: Cheryl Henley, the Elms at Stoney Run Village; Lauren Bower, Elm Street Development
Writer: Julekha Dash

The Station North Arts and Entertainment District will welcome a $12 million artists' residence and gallery by the end of the year, furthering city officials' goal to make the area north of Mount Vernon a magnet for creative types.
 
A team of four developers and the Rouse Co. Foundation are leading the City Arts project, an 80,000-square-foot building with 69 rental units and eight townhomes that will go on sale.

The developers are currently looking for someone who can book performers and find artists to display their work on the walls, says Charlie Duff, president of Jubilee Baltimore Inc., one of the developers. The other developers are Homes for America Inc., TRF Development Partners-Baltimore and Baltimoreans United in Leadership Development. Southway Builders Inc. is the general contractor.

Duff envisions City Arts as a place that can help retain artists in Station Arts after they hit 25. The Station North area is chock full of "cheap grubby space" that appeals to the recent college graduate, but few spaces for folks in their late 20s, Duff says.
 
"Eventually, people want to settle down and go to bed earlier and they can't do it now in Station North," he adds. "We want this building to become part of the Station North scene as it evolves."

The neighborhood is home to long-time businesses Tapas Teatro and Everyman Theatre. In recent years, it has attracted new arts organizations, including Single Carrot Theatre and the Strand Theater Co.

The City Arts project at 440 E. Oliver Street was financed with the federal low-income housing tax credit. Rents will cost $625 for a one-bedroom apartment and $750 for a two-bedroom apartment.

Prices for the townhomes have not been set yet, Duff says.


Source: Charlie Duff, Jubilee Baltimore Inc.
Writer: Julekha Dash

A consortium including Healthy Neighborhoods, the city's Department of Housing and Community Development, Saint Ambrose Housing Aid Center, Druid Heights Community Development Corporation and Chesapeake Habitat for Humanity as well as the for-profit partnership with Telesis Baltimore Corporation, has been awarded $26,092,880 in NSP2 funds.

The group will use these funds to address stagnant and declining housing markets across targeted areas in 12 census tracts. Addressing the blighted properties in these targeted areas will stem decline and build value in the city's real estate market. The consortium will acquire, rehabilitate and resell or rent more than 350 vacant or foreclosed properties and will also provide financing mechanisms in the form of gap financing, second mortgages and closing cost assistance for 981 units. 

A portion of the funds budgeted for acquisition-rehab activities will be used to support a "homestead" model to stabilize neighborhoods by attracting young urban pioneers. The hope is that these activities will attract new homeownership in the neighborhoods, strengthen the real estate market and support active residential involvement. Neighborhood stabilization will be further maximized by the leveraged commitment of $7,429,472 in other funds.

"The award of these funds reaffirms the strength of our neighborhoods and Baltimore's history of effective partnerships with neighborhoods, lenders, non profits and the city government," says Mark Sissman, President of Healthy Neighborhoods, Inc.

Made possible through the American Recovery and Reinvestment Act (ARRA), this round of NSP grants is being awarded competitively to applicants who developed the most innovative ideas to rebuild local communities by purchasing vacant, foreclosed properties and putting them back into productive use, while demonstrating that they have the capacity to be responsible stewards of taxpayer dollars. There were 482 applicants, requesting over $15 billion in support. These two agencies were the only recipients of funding in the state of Maryland.

"This is wonderful news for Baltimore City and its neighborhoods," says Mayor Sheila Dixon. "I want to thank all those individuals inside and out of City government who collaborated, breaking down silos, to produce two visionary and highly competitive applications."

U.S. Housing and Urban Development (HUD) also awarded another $5,289,216 to Chicanos Por La Causa Inc. to support efforts by Mi Casa Inc. in Johnston Square in Neighborhood Stabilization Program II funds.

"Mi Casa is very excited to receive this funding which serves as a testament to the partnerships established with the Baltimore City Housing Department and Chicanos Por La Causa. The NSP2 funds will allow us to develop a significant number of vacant houses for low and moderate income households and support the ongoing redevelopment of the Johnston Square community," said Fernando Lemos, Founding Executive Director, Mi Casa Inc.

The federal government appropriated $2 billion dollars in NSP2 funds on an emergency basis to mitigate the impacts of foreclosures and abandonment on communities around the country. The proposed neighborhoods in Baltimore where work will be focused are: Belair-Edison, Better Waverly, Coldstream Homestead Montebello, Reservoir Hill, Patterson Park/McElderry Park, Barclay/Old Goucher, Johnston Square and Ednor Gardens.

"It is extraordinary that two NSP2 applications from Baltimore received awards. We have wonderful neighborhoods that were turning around and poised for continued long term investment before the foreclosure crisis," said Housing Commissioner Paul T. Graziano. "This support will ensure that those investments will not be in vain."

The award also requires housing counseling for families receiving homebuyer assistance funds through NSP. In addition, it will protect homebuyers by requiring grantees to ensure that new homebuyers under this program obtain a mortgage from a lender who agrees to comply with sound lending practices.

Source: Baltimore City Department of Housing and Community Development
Writer: Walaika Haskins