Commercial Real Estate : Development News

A biopharmaceutical company that is seeking FDA approval for a drug to treat infantile spasms plans to open a new office in Columbia.

Questcor Pharmaceuticals Inc. has signed a lease for a 6,186-square-foot office at Columbia Corporate Park. The new office is located at 6011 University Blvd. and will open Nov. 1.

Based in Union City, Calif., Questcor primarily focuses on treating rare central nervous system disorders. It is currently seeking FDA approval for its H.P. Acthar Gel to treat infantile spasms. The decision was supposed to come last month, but was delayed by the FDA. The drug is currently used to treat multiple sclerosis.

The Columbia office will focus on clinical research and regulatory affairs.

"Due to the significant growth Questcor has experienced and expects to continue, we are significantly expanding our R&D workforce in Columbia," said Dr. David Young, chief scientific officer, in a statement.

The company will be adding several employees to the office, including a vice president of clinical research, a manager of regulator affairs and a director of clinical research.

Questcor signed the lease with Baltimore's Merritt Properties LLC. Other leases Merritt has signed this year at Columbia Corporate Park include White Cliffs Consulting LLC, Trusant Technologies LLC and Maroon PR.

Questcor's drug Doral is used to treat insomnia.

Writer: Julekha Dash
Source: Dr. David Young, Questcor

Maryland Art Place is moving its office and gallery from Power Plant Live to Baltimore's west side as the nonprofit hopes to be an arts anchor for the neighborhood.

MAP has owned the 20,000-square-foot building at 218 W. Saratoga St. since 1988, but it has been renting out the space to other nonprofit tenants. Some of those will remain when MAP moves in January to the five-story building.

Eventually, leaders at the nonprofit would like to use the entire space for community arts projects, MAP Executive Director Cathy Byrd says. This could include artist studios, a dance studio and a small movie theater. To do that would take several years and require a thorough renovation of the building costing in the neighborhood of around $1.5 million, Byrd says.

The nonprofit is now applying for grants and planning a series of fundraisers to raise money for that effort. MAP plans to hold its fall fundraiser, Pop-Up Gala, Nov. 12 in the Saratoga St. building.

Byrd says the organization wanted to take part in what it sees as a burgeoning arts district on the west side. The area is home to the Hippodrome theater, the artist warehouse known as the H&H building, and Current Space art gallery, which recently moved to Howard St.

Next year, it will be home to Everyman Theatre once it moves from its Charles Street spot in the Station North Arts and Entertainment District.

The basement of the MAP building on Saratoga St. currently houses underground performance art series 14Karat Cabaret.

Writer: Julekha Dash
Source: Cathy Byrd, Maryland Art Place

A Royal Farms is in the works for Crossroads@95, a 1,000-acre development in Eastern Baltimore County.

A drug store, dry cleaner and a restaurant could also be part of the retail mix at Crossroads, says Jerry Wit, senior vice president of marketing for Baltimore developer St. John Properties Inc.

Construction on the 5,786-square-foot convenience store will begin in the spring and it will open in the fall of 2011. The store is located along Maryland Route 43, making it a convenient location for drive-by traffic and tenants alike, Wit says.

St. John is one of four developers of Crossroads. The others are Somerset Construction Co. of Bethesda, Columbia's First Industrial Realty Trust, and Chesapeake Real Estate Group LLC of Glen Burnie.

Wit says Crossroads will house about 35,000 square feet of retail in a year's time. St. John is talking to several well-known restaurant owners about opening at the White Marsh development (Wit declined to name the owners for competitive reasons). Though many restaurant owners have expressed interest in the site, it's been challenging for these entrepreneurs to get funding since credit remains tight, Wit says.

Retail at Crossroads will largely be services and amenities to support the business park's office workers, Wit says. Crossroads' developers have signed up 30 office tenants. Recent additions to the site include CDS Logistics Management Inc., Danfoss Inc., and BGE Home.

Writer: Julekha Dash
Source: Jerry Wit, St. John Properties Inc.

Bazensky's, a family-owned furniture store, has moved to Middle River and expanded its product line to attract a broader range of clients.

Last month, the store moved from 1727 E. Joppa Rd. in Parkville to 917 Middle River Rd.

The store that once sold mostly dining room sets, patio furniture, and bar fixtures now also carries sofas, bedroom furniture, and a full line of home furnishings.

As the economy went south, Bazensky's could no longer afford to specialize in a particular type of furniture, Owner Miriam Bazensky says. That's because customers are now less interested in spending time and money driving around to various stores to furnish their home.
"People don't want to waste gas going from one store to another," Bazensky says.

The home furnishings business has been severely hurt by the downturn in the housing market.

"It's been a challenge to accommodate [customers]. People are asking for severe discounts but I can't stay in business and give the same discounts as the big box stores," Bazensky says.

The store now has a wider range of prices. Sofas start at $429 and barstools cost anywhere from $99 to $600.
"Some people don't want to spend that much money," Bazensky says. "They need to put food on the table � and we want it to be one of our tables."

The company is spending about $100,000 to move to the 11,000-square-foot standalone building and expand its product line.

But the business owner says she believes the investment will pay off.

"It was risky not to move," Bazensky says.

Middle River seemed like a good location because it is convenient to residents in Cecil and Harford Counties, Bazensky says.

Writer: Julekha Dash
Source: Miriam Bazensky, Bazensky's

A Federal Hill bar is hoping to make some dough with the aid of pepperoni and mozzarella.

Grumpies Pour House is expanding into the Cross St. building next door to its current location and putting in a coal-fired pizza oven, owner John Dolaway says.

Currently, the six-year-old bar at 25 Cross St. serves alcohol and no eats. But once the owners tear down the wall between that building and 23 Cross St., they will serve pizza, salads and maybe wings. Dolaway owns both buildings.

The extra space will allow it to seat another 40 customers, to a total of about 100.

Dolaway says he thought pizza was a good idea since there aren't too many pizza joints in Federal Hill. It could also bring in the family crowd earlier in the evening, Dolaway says.

Dolaway says it's "foolish" to run a bar without offering people something to eat � another avenue to earn money in the same space.

"I think we can make money doing this," Dolaway says. "I feel there is a need for something like this."

Dolaway says he likes Federal Hill because of the vibrant, city life, where people can walk to Cross Street Market and other locales.

"It's a fantastic place for young adults to congregate."

Dolaway says he does not know yet how much the expansion, which will take about six months, will cost.

Writer: Julekha Dash
Source: John Dolaway, Grumpies

Cajun cuisine and barbeque will soon be on the menu at the Liberty Road corridor.

Baltimore chef and caterer Daniel Brandford is opening the Big Easy at the end of next month at 9820 Liberty Rd. in Randallstown.

The 4,500-square foot restaurant will serve dishes like blackened chicken and catfish, pulled pork, and beef brisket. One side of the menu will feature Cajun cuisine and the other side will contain barbeque items. Brandford says he will keep entrees under $15 in order to compete with T.G.I. Friday's and other chain restaurants.

"I love New Orleans cooking," Brandford says. "It's one of my favorite places to eat and experience new dishes."

The restaurant will serve lunch and dinner and on weekends, breakfast. Brandford hopes to draw area families and workers at the local car dealerships and the police station across the street.

He thought the area in Northwest Baltimore County was ideal for the 134-seat restaurant. Other nearby eateries are largely fast food chains or bars that serve food.

Brandford declined to say what he is spending to open the restaurant.

The Liberty Road area consists of a string of shopping centers, five of which underwent major renovations and streetscape improvements with new landscaping and lighting within the last eight years. The average household income is $60,000, according to the Baltimore County Office of Economic Development.

Writer: Julekha Dash
Source: Daniel Brandford, the Big Easy

A Denver real estate investment trust has snatched up a Brewers Hill apartment complex for $46 million as it beefs up its portfolio in the Baltimore and Washington markets.

UDR Inc. bought the 180-unit building, called Domain Brewers Hill, as more people choose to rent versus buy property in the wake of the housing bust. Barron's forecasts that the percentage of households who own their own home will drop to 64 percent in 2015, down from its peak of 69 percent in 2004.

UDR likes to buy property in areas where there is limited land on which to develop more apartment units and where residents have a high propensity to rent versus own a home, says Andrew Cantor, UDR's vice president of investor relations.

It also invests in areas where there is job growth. Though Maryland's unemployment rate rose to 7.4 percent in August, the state has added 33,200 jobs since January, according to the state's department of labor, licensing and regulation.

Cantor says fewer people are leaving its apartment homes � a sign that rental demand is heating up. In August, just over half of its residents left their apartment homes, versus 61 percent during the second quarter of 2009.

"That's a huge improvement for us," Cantor says. With fewer people leaving, the company can charge higher rents.

With the Brewers Hill purchase, UDR now has 2,300 apartment units in Baltimore. It owns 50,000 apartment homes nationwide.

Average rent for the one-and-two-bedroom apartments at Domain Brewers Hill is $1,975. The apartments include high ceilings, hardwood floors, granite countertops, and stainless steel kitchen appliances. UDR added free wireless Internet access to the property.

Domain Brewers Hill was built in 2009 by the Hanover Co. of Houston.

Writer: Julekha Dash
Source: Andrew Cantor, UDR

The owners of popular Remington restaurant and bar the Dizz have opened a second location in Hampden.

The Dizz Grandview opened Sept. 15 on the 15th floor of a high rise for senior citizens.

And next door to their original location at 300 W. 30th St., the restaurant now has more space to sell T-shirts blazoning the TV show starring neighborhood baker Duff Goldman.

The 76-seat restaurant currently serves lunch and dinner. By mid-October, it will begin serving breakfast � as well as alcohol, the Dizz Manager Elaine Stevens says. For now, the Hampden restaurant is BYOB. Stevens says she expects to get a liquor license next month.

Surrounded by glass, the restaurant at 3838 Roland Ave. offers diners a view of Baltimore City that will hopefully be its main attraction, Stevens says.

"The view is beautiful," she says. "That's what's going to sell the place. It's a nice little spot."

The restaurant's menu is the same as the Remington location. That includes steaks, seafood, sandwiches, and burgers.

The Dizz' owners (Stevens' brother and his wife) chose the location hoping to attract the young professionals in Hampden and the older residents in the building.

Stevens hopes to get customers from Remington on busy nights when the wait to snag a table at the original location can be as long as 90 minutes.

Folks who are waiting now have a place to buy "Ace of Cakes" paraphernalia, including T-shirts, mugs, and water bottles. The Dizz was selling more than 200 "Ace of Cakes" T-shirts � at $25 a pop � per month, prompting the owners to open a separate gift shop next door. The store will also sell jewelry, photography, and paintings by local artists who frequently dine at the Dizz. Sports fans can also get gear supporting the Baltimore Orioles and the Ravens.

Writer: Julekha Dash
Source: Elaine Stevens, the Dizz

Hampden's main thoroughfare, the Avenue, will soon be home to a new caf� and art gallery.

The Arthouse will open the first week of November at 1115 W. 36 St. With seating for about 100, the two-story restaurant will feature an espresso bar and works from local artists, says Lou Catelli, who is helping to get the 2,000-square-foot restaurant up and running.

The restaurant could grow its own produce on site if the owners get zoning approval for a rooftop garden, Catelli says.

The owners, Joan Delina and Deb Smith, are applying for a new liquor license, which requires that they invest a minimum of $200,000 into a restaurant of that size.

The Arthouse will be open from 10 a.m. until 10 p.m., serving lunch and dinner.

The menu will be "eclectic," Catelli says, featuring local produce, free-range meats, and Maryland wines. Entrees will run about $15 and include seafood, meat, and vegetarian dishes.

Catelli has worked with several local restaurants including Sotto Caf� in downtown Baltimore and 13.5% wine bar in Hampden.

Catelli says "bohemian" Hampden seemed like the ideal spot for an art gallery and caf�.

"Hampden is the center of excitement," Catelli says. The area has got a mix of young professionals, students, and professors who patronize local shops, along with a tight-knit group of merchants.

"There's no other neighborhood that's happening like Hampden right now," he says.

Writer: Julekha Dash
Source Lou Catelli, the Arthouse

St. John Properties Inc. has begun construction on three new commercial buildings at Aberdeen Proving Ground in Harford County.

The three buildings total 180,000 square feet and will be complete by the middle of next year.

The properties are located at the Government and Technology Enterprise, or the Gate, a 416-acre technology business park. The new office buildings are located at 6180, 6200, and 6210 Guardian Gateway Dr.

Baltimore developer St. John Properties is constructing a total of eight buildings at the office park. The county is expected to get an influx of federal contractors next year with the Pentagon's base realignment and closure, or BRAC. Aberdeen Proving Ground is expected to get 20,000 workers next year.

The office complex is near the Command, Control, Computer, Communication, Intelligence, Surveillance and Reconnaissance Command operations, which will bring workers from New Jersey and Virginia.

The new buildings will adhere to standards to satisfy the requirements for Leadership in Environmental and Energy Design Silver-certification, specified by the U.S. Green Building Council.

The buildings' environmentally friendly features will include a high-efficiency heating, ventilating and air system, high performance windows to reduce energy usage, lavatory fixtures with sustainable elements to conserve water, wetland forest preserves, and drought-tolerant landscaping.

Writer: Julekha Dash
Source: St. John Properties

Another fast food chain is headed to Baltimore � but don't expect fries with your sandwich.

Freshii, a franchise that sells made-to-order salads, wraps, soups and yogurt, will open a store at the Inner Harbor the first quarter of next year. Another Maryland store will open Dec. 1 at National Harbor in Prince George's County.

In total, franchise company Goel Management wants to open 20 Freshii stores in Maryland in the next three to four years, CEO Sumeet Goel says. So far, Goel has signed a letter of intent to open stores in Annapolis, Columbia and College Park. He plans to open two stores in Columbia and one in Ellicott City.

Started five years ago in Toronto, Freshii has been likened to Starbucks for its ambitious growth plans and Whole Foods for its eco-friendly practices. The company expects to have 52 locations open by the end of the year and 300 by 2015. Freshii relies on biodegradable materials. Customers can even bring in their own bowls.

The restaurant touts its healthful menu and offers three types of meals: high protein, low fat, and "balanced," with essential fats and slow-burning carbs. Meals cost, on average, $8 to $9.

Stores range from 200-square-foot kiosks to 2,000 square feet. The downtown Baltimore store will be about 1,500 square feet.
Each store costs between $50,000 and $200,000 to open.

Goel chose the Inner Harbor because the store will attract nearby office workers and tourists.

A Maryland native who lives in Pasadena, Goel also owns all of the Baja Fresh franchises in Baltimore. He says he believes the Baltimore market has attracted a more health conscious crowd.

Writer: Julekha Dash
Source: Sumeet Goel, Freshii

Shops selling teen fashion accessories, curtains and fries are the latest to debut at Hunt Valley Towne Centre.

Country Curtains, Five Below, Boardwalk Fresh Burgers & Fries and Chick-Fil-A opened within the last two months at the open-air shopping center anchored by Wegmans Food Markets.

Five Below, a discount retailer targeting teens, opened a 9,000-square-foot store selling school supplies, sporting goods, games, fashion accessories and bath and body products. Everything in the store costs $5.00 or less.

Boardwalk Fresh Burgers & Fries opened a 2,500-square-foot store on the second level of the mall, next to Greetings & Readings.
Country Curtains sells drapes, bedding, pillow and other home d�cor in its 3,100-square-foot store. It moved to the center at 118 Shawan Rd. from another Hunt Valley location on York Road.

Later this year, the shopping center will welcome MVP Entertainment, the Ray Lewis-backed bowling alley and restaurant. The 62,000-square-foot facility will feature a sports bar, billiard tables, golf simulators, a coffee bar and 38 bowling lanes equipped with flat-screen televisions.

"It will add a tremendous amount of entertainment," says Greenberg Gibbons Commercial Corp. Chief Operating Officer Tom Fitzpatrick. Greenberg Gibbons is the developer of the Main Street-style shopping center.

Fitzpatrick says he sees a bit of an uptick in the retail market, which soured during the recession.

"The retailers that have the capital to expand are certainly doing so," he says.

To win over business owners, Greenberg touts the center's ample parking and anchor tenant Wegmans. With the new tenants, that leaves all but one space in the nearly 1 million-square-foot shopping center leased.

Writer: Julekha Dash
Source: Tom Fitzpatrick, Greenberg Gibbons

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

The Legg Mason building in Harbor East is home to the namesake financial behemoth, the Johns Hopkins Carey Business School and a flurry of new retailers.

A contemporary art gallery will join the glass-encased 24-story building Sept. 6.

Clark Priftis Art will open a 2,400-square-foot gallery in a location that owner Ann Priftis hopes will give her access to the well-heeled residents, tourists and office workers in that part of town.

"It's an ideal location in terms of accessibility for tourists and residents," Priftis says.

With floor-to-ceiling windows, the gallery's pie-shaped space is located at the Harbor East traffic circle. That spot will hopefully get great visibility from pedestrians and drivers.

An art dealer and appraiser who has worked in New York, Priftis has been scouting Baltimore for years to find the perfect spot. Several years ago, she was close to opening an art gallery on the city's west side. But those plans fell through when the cost turned out higher than original estimates and she and her former business partner had different visions.

Priftis has long been interested in Harbor East, but when she approached the developers several years ago, the rent was out of her range.

She declined to say how much she is paying for her space in Harbor East. But in general, retail rents throughout Baltimore have come down as much as 30 percent from their highs in 2006 and many developers are offering a variety of incentives to lure tenants.

Priftis has signed a six-month lease with the option to extend her stay if things go well.

The gallery will feature modern painting, sculpture and photography.

"We're trying to bring high quality art from various parts of the world," she says.

The gallery will be open Tuesday through Saturday, from 11 a.m. until 8 p.m. and from noon until 5 p.m. on Sundays.

Writer: Julekha Dash
Source: Ann Priftis, Clark Priftis Art

Downtown Baltimore's newest restaurant, Kona Grill, is spending $3 million to open for business at 1 E. Pratt St.

The Baltimore location, to open Oct. 4, is only the second downtown venue for Kona Grill, which operates 24 restaurants in 15 states.

The other downtown restaurant is located in Stamford, Conn. Typically, the chain selects suburban malls rather than city spots, Kona CEO Marc Buehler says.

But the company likes the Inner Harbor's mix of office workers, tourists and conventioneers who will all hopefully take a bite out of the restaurant, Buehler says.

"We really think it's going to be a great site for us," Buehler says.

The nearly 7,000-square-foot restaurant will seat 189 inside an another 74 on its Pratt Street patio. The store will employ 120.

Last year, the Scottsdale, Ariz., company opened four restaurants in Richmond, Va.; Woodbridge, N.J.; Eden Prairie, Minn.; and Tampa, Fla. And it plans to open two or three restaurants next year, Buehler says. It continues to eye the East Coast � from Washington, D.C., to Philadelphia. Buehler couldn't be more specific, as a publicly traded company.

The restaurant serves sushi, grilled meats and seafood, pizzas and salads. Buehler describes the concept as "polished casual," ranking with the Cheesecake Factory or P.F. Chang's.

It gets business from 21-to 35-year-olds for its happy hour and late night bar business, while its lunch and dinner crowds range from 24 to 54 years of age.

Writer: Julekha Dash
Source: Marc Buehler, Kona Grill