Commercial Real Estate : Development News

Hoping to capitalize on increasing growth east of the Inner Harbor, plans are in the works to build a new 205-room hotel with ground-level stores in Harbor East next year. 

Englewood LLC and Chesapeake Real Estate Group have reached an agreement to construct the property and 15,000 square-feet of retail space at a former warehouse building at 511 S. Central Ave. As the primary developer, Englewood will own and operate the hotel.

Chesapeake Real Estate Group will operate the retail space, says Ken Finkelstein, president of Bethesda's Englewood LLC. Construction would take about 18 months to complete if the project gets approvals from the city's zoning and design panels.

The planned hotel will be an upper mid-market brand, which means slightly more upscale than the neighboring Hilton Garden Inn and Courtyard by Marriott, Finkelstein says. He declined to say how much the project would cost or the hotel brand. 

The developers purchased the property at 511 S. Central Ave. in December for $3.2 million, according to state property records. The building is in the preliminary stages of the development process so it's too early to say what kind of shops  will fill the new construction, says Neil Tucker, principal at Chesapeake Real Estate Group.

"This is a pretty dynamic area where lots of growth has occurred and more will occur as Harbor East and Harbor Point expand," says Finkelstein, who launched the development firm within the last year. Finkelstein is a former partner at the JBG Cos. of Chevy Chase, which has developed numerous hotels in the Washington area. 

Finkelstein's new Baltimore hotel will face competition from the 256-room Four Seasons Hotel Baltimore, which opened last year in Harbor East, and several other newer properties. But Finkelstein says he believes there is opportunity and room for another hotel in that neighborhood given the area's continued growth. 

Baltimore City officials approved a 3 million-square-foot master plan for Harbor Point, an area between Harbor East and Fells Point. The massive 500,000-square-foot regional headquarters for Chicago energy company Exelon Corp. will open there in 2014. Harbor East has seen an influx of national retailers with the recent openings of J. Crew, Anthropologie and MAC Cosmetics and new restaurants. Gordon Biersch is spending $3 million to open a 329-seat eatery in October while Fleet Street Kitchen will open next month. 
 
Chesapeake Real Estate Group developed the Babgy Building, which houses Fleet Street, Ten Ten restaurant and several offices.  

"We want to build upon the success of Harbor East with the Babgy Building project," Tucker says.

Source: Ken Finkelstein, president of Englewood LLC; Neil Tucker, principal at Chesapeake Real Estate Group 
Writer: Alexandra Wilding, [email protected]
  
 

Federal Hill residents can now get a breakfast fix morning, noon and night.
 
Light Street Café opened this month at 1121 Light St., serving breakfast all day Monday through Friday, 6 a.m. to 10 p.m. and until 2 a.m. on weekends.
 
The roughly 1,000-square-foot space seats 24 but mainly serves as a carryout. Menu items include Town N’ Country coffee and espresso, pancakes, omelets, sandwiches, soups and salads. Meals are modestly priced, like two pancakes for $3.99, three-egg omelets served with bread and home fries for $5.49 and a corned beef or turkey Rueben melt with chips and a pickle for $7.99.
 
Co-owner Chris Tipton and his wife Norma had wanted to open a café for years and have gotten a good response so far from neighbors. One of the biggest compliments from people who live in Federal Hill is that they’re happy it’s not another bar,” Chris Tipton says.
 
Light Street Café currently employs eight and will possibly hire more after the business proves successful.

Writer: Jolene Carr
Sources: Chris Tipton

A Federal Hill sports apparel shop is hoping to score with sports fans after moving to a spot that puts it closer to M&T Bank Stadium and Camden Yards.
 
Bobabooi’s Treasure Chest sells mostly Ravens, Orioles, Natty Boh and Terps gear and will also sell Washington Capitals gear starting in September. Prices range from $5-$100.
 
Bobabooi’s Treasure Chest relocated from 1129 Light St. to the 500 square-foot location at 1028 South Charles St. when they couldn’t obtain a long-term lease from the previous landlord, Co-owner Angela Lauta says.
 
Angela and her husband Dan also wanted to find a location closer to the stadium. The Light Street location drew less foot traffic as most of the crowds would gravitate to the bars and eateries, Angela says. The new store is painted bright Orioles orange. 
 
But the Lautas still wanted to stay in Federal Hill. “There’s no other [stores] around here that just sell sports gear,” Angela says. “We enjoy the fun, festive environment and the diverse crowds.”
 
They originally considered opening a vintage clothing store but then saw a need for sports apparel. Selling sports apparel also matched their backgrounds in sports as Angela played basketball and track in college and Dan played college football and attended the Giant’s training camp.
 
The Lautas run the shop themselves and would like to expand and hire more employees once their year-old business grows. They are currently looking for a social media intern to work a couple hours each week, taking pictures of new merchandise and promoting Bobabooi’s online.

Writer: Jolene Carr
Source: Angela Lauta, Bobabooi's Treature Chest 

Gordon Biersch Brewery Restaurant is spending $3 million to open a 329-seat eatery in Harbor East, becoming the latest new establishment to call the growing nightlife and shopping destination home. It's also one of the many breweries and beer-themed restaurants enjoying brisk sales. 

Known for its German lagers, Gordon Biersch will open its third Maryland store at 1000 Lancaster St. Oct. 22. The restaurant will employ around 80 and have at least six beers on tap, says Kelly Wilson, Gordon Biersch’s director of marketing. The building houses Charleston and Harbor Bank of Maryland.

“Harbor East is an attractive urban location that is home to numerous business headquarters as well as hotels to accommodate the business traveler,” the company’s Vice President of Real Estate John Tugman wrote in an email. “Harbor East has potential for growth.”

J. Crew, Anthropologie and MAC Cosmetics recently moved to the area. Last year, the Four Seasons Hotel Baltimore opened last, along with celebrity-chef led restaurant Wit & Wisdom. It added outdoor seating for its Wit & Wisdom bar and welcomed Japanese restaurant PABU this year. The hotel also features artisan coffeehouse Lamill Coffee.

Gordon Biersch executives say they will continue to focus on the Baltimore area after having had success in other mid-Atlantic areas. Beer-themed eateries were the fastest-growing restaurant segment last year, according to Chicago food consulting firm Technomic Inc.

Gordon Biersch' sales grew 22 percent last year. The Chattanooga, Tenn., company operates about 30 restaurants in 20 states. Its two Maryland sites are in Annapolis and Rockville. 

Two years ago, private equity firm Centerbridge Capital Partners acquired the chain, now a subsidiary of CraftWorks Restaurants & Breweries. 

Writer: Julekha Dash
Sources: Kelly Wilson and John Tugman, Gordon Biersch 

Towson University is bringing four of its disparate community health and wellness groups into the new Towson City Center building whose anchor tenant moved in this month.
 
The four centers will take up nearly 47,000 square feet when the university completes its move this week. The Institute for Well-Being is composed of the Center for Adults with Autism; the Occupational Therapy Center; the Speech, Language and Hearing Center; and, the Wellness Center. The university is spending $6 million on the relocation to downtown Towson. 
 
The university’s radio station WTMD will also move to the new office builiding, making the university one of the largest tenants of the $27 million Towson City Center. Other tenants will include the Bagby Restaurant Group’s farm-to-table restaurant Cunningham’s; anchor tenant MileOne Automotive, which opened doors at the new space Aug. 2; BusinessSuites; and, WMS Partners.
 
“We’re taking programs that are currently spread out and placing them all together under one roof,” Director of the Institute for Well-Being Sharon Glennen says. “This will allow us to expand.”
 
The Center for Adults with Autism provides art, music and rock climbing classes to hundreds of autistic clients. The new space will include a 1,500-square-foot model apartment that can be used to prepare autistic adults for independent living.
 
The Wellness Center, which serves about 325 clients in the community, has a blood lab, a metabolic cart and a Nexus scanner. The roughly 10,000-square-foot new space has a better layout with the exercise studio connected to the other rooms so that staff can better monitor the clients. There are currently six staff members, but more may be added within six to 12 months, Wellness Center Director Scott Fidler says.
 
The Speech, Hearing and Language Center is the largest of the four organizations, serving more than 1,000. The new space includes two new hearing testing sound booths to make a total of four. There will be two classrooms for fall and spring programs provided to students with disabilities, allowing more attendees than before when the programs were offered at various locations around the community.
 
The Occupational Therapy will include services for the Stroke Survivor’s Education and Support Group, with a model bathroom and kitchen to retrain stroke survivors in daily living.

Writer: Jolene Carr, 
Source: Sharon Glennen, Towson University 

The owners of an Anne Arundel County Mexican restaurant are offering area diners a second helping of their burritos, tacos, fajitas and tamales.

The Landaverde family is opening Rinconcito Mexicano at the Odenton Shopping Center by early October, Gloria Landaverde says. 

The business owners are opening the 130-seat eatery because they see a demand for their Mexican fare at their five-year-old Mia Casita, Landaverde says. “Sometimes we get very busy and there’s not enough room.” Patrons wait as long as 30 minutes during busy nights at the Crofton restaurant, she says.

Located on Annapolis Road, Odenton Shopping Center is home to a Five Guys Burgers and Fries, Three Brothers Restaurant and Fashion Bug.

The county recently granted Rinconcito Mexicano a liquor license. It is not affiliated with any other Rinconcito Mexicano restaurants in other cities, Landaverde says.

Writer: Julekha Dash
Source: Gloria Landaverde 

DIY home improvement enthusiasts in Canton don't have much longer to wait for their new hardware store.
 
Canton Ace Hardware will open in mid-September at 1001 S. Lakewood Ave., following an investment of as much as $800,000 from owners, says Rachel Machacek, a spokeswoman for Ace Hardware in Greater Baltimore. The store will be located across the street from the Canton Safeway. 
 
Co-owners Gina Schaefer and Marc Friedman invested between $600,000 and $800,000 to open and renovate the 11,000-square-foot space. Schaefer and Friedman own seven other Ace stores in Baltimore and Washington, including locations in Waverly and Federal Hill. 
 
While the space was close to move-in ready, the company did complete some renovations, including adding a new HVAC system, new offices and lighting.
 
Canton attracted the owners because of its walkability, neighborhood feel, and its proximity to independent shops and restaurants. The company wants local residents to have a shop in the neighrborhood for their home improvement needs without having to get into the car and make a lengthy drive, Machacek says.
 
The store will look to employ 15 workers initially, Machacek says.
 
The store will sell a variety of products including basic hardware, housewares, lawn and garden supplies, patio furniture, and more. And, you can bring your dog there. 
 
As part of the national Ace Hardware co-operative, the stores are locally owned establishments that bring jobs and business to the local economy, Machacek says.
 
 
Source: Rachel Machacek, communications manager, A Few Cool Hardware Stores
Writer: Alexandra Wilding, [email protected]
 

The New Park Heights Community Development Corp. Inc. finalized a deal this month to buy the Park Lane Shopping Center in Northwest Baltimore for $7 million and is plotting the center's long-awaited redevelopment.
 
The nonprofit's president and CEO Will J. Hanna II says it bought the shopping center at 4400 Park Heights Ave. with private funding.

Three years ago, Baltimore City and the Baltimore Development Corporation approved a $4 million bond to be used for the redevelopment of the shopping center as part of the Park Heights Revitalization area. Hanna says he expects work to begin in January and to be finished by the fall. Stores at the shopping center, at the corner of Park Heights and Coldspring Lane, will remain open during the work.

Park Lane Shopping Center is 263,000 square feet in size, a figure that includes a large parking lot in the rear. Hanna says it is 85 percent occupied, and current tenants include a Dollar Store, pharmacy, mattress store and check cashing place. The CDC will be seeking a bank and other new tenants once the renovations are done. 
 
Hanna estimates the shopping center is more than four decades old and says it looks "dated." The redevelopment of the property will include a refacing of the exterior and a reallocation of the size of the spaces within, to allow for more new tenants. 
 
The construction of a library on part of the rear parking lot is also under consideration. “The community wants and needs a library,” says Hanna. He says he has not contacted Baltimore City’s Enoch Pratt Library System and a library would most likely be a private venture.
 
To celebrate the acquisition, the community’s annual “National Night Out” will be held at the Park Lane Shopping Center. Hanna says his group is partnering with the Baltimore City Police Department and city agencies for the anti-crime event.
 
Source: Will J. Hanna II, New Park Heights Community Development Corp. Inc.
Writer: Barbara Pash

Fells Point is poised to get a new community bank this fall.
 
Seeking to attract more customers, the Baltimore branch of CFG Community Bank, will relocate from Lombard Street in Highlandtown to a branch in Fells Point that will open Sept. 17.
 
The bank will move into a new, 1,000-square-foot location at 1615 Thames St. in Fells Point where it hopes to attract both residential and commercial clients, Branch Manager Curtis Pope says.
 
Pope previously launched branches of SunTrust and PNC Bank as a manager.

"I like the community side of banking. I love interacting with people, and building the communities we grew up in," Pope says.
 
The bank's relocation was inspired by a desire to be in an area that is more affluent and has more foot traffic, Pope says. The branch is currently located in a shopping center. 
 
Pope says the bank plans to help build the community by lending to businesses with a proven track record, including bars and restaurants that sometimes have a harder time getting loans. While some bigger banks might reject some smaller businesses types outright, Pope says CFG Community Bank plans to work with businesses that show potential.
 
No additional branches are planned at the moment, but Pope says the company could expand in the future.
 
The bank has locations in Lutherville and Annapolis, and recently relocated its Lutherville branch from Towson to accommodate for more parking and vehicle traffic.
 
 
Source: Curtis Pope, branch manager
Writer: Alexandra Wilding, [email protected]
 
 

An Italian restaurant chain is saying buon giorno to Greater Baltimore as it expands its presence in malls owned by General Growth Properties Inc.

Buca di Beppo Italian Restaurant is spending $1 million to open a 250-seat eatery at White Marsh Mall by the end of October.
The company will hire 80 to staff the 7,000-square-foot restaurant, says John Thall, Buca’s senior vice president of business development.

Owned by Planet Hollywood, the Orlando-based chain operates 88 U.S. and seven international locations, including restaurants in   Gaithersburg and Washington, D.C. It recently signed deal with General Growth Properties to open 10 restaurants at its malls in Texas, Illinois, Georgia and six other states.

“Malls attract a lot of energy,” Thall says. The company is looking at regional sites in Southern Maryland, Chesapeake Va., and Winchester, Va., for additional locations.

One of the restaurant’s distinct features is a wine rack holding used, empty bottles. Customers sign the bottles they order and they are left on display in the restaurant, leaving a “good memento for people who want to come back,” Thall says.

Writer: Julekha Dash; [email protected]
Source: John Thall, Buca di Beppo

Baltimore Burger Bar, a restaurant specializing in farm-to-table 'foodie' burgers, plans to relocate  from its present location on the Avenue in Hampden to another spot on the same street with a larger kitchen.

Store Owner Anisha Jagtap says she is spending $50,000 on the move and renovation and hopes to open the new location by the end of September.
 
The new space is currently zoned as retail space and Jagtap will go before the city's zoning board Aug. 21 for approval.
 
Currently housed in a two-story, 1,400-square-foot space at 830 W. 36th St., Baltimore Burger Bar will relocate to 840 W. 36th St. to a 1,200-square-foot space.

Jagtap also plans to construct a 166-square-foot addition as well as provide outdoor seating, making the overall space larger and more conducive to table service. The additions and renovations are pending approval and are scheduled to happen along with the restaurant opening this fall. 

 
The Burger Bar sources their food locally and offers "not the average burger," Jagtap says. A current menu item includes "The Squash Blossom," which includes grassfed beef, stuffed squash blossom, smoked bacon, chevre, and strawberry basil ketchup.
 
At the new location, Jagtap plans to take a "classic French approach" to the menu that is still developing, and offer coursed dinners throughout the week. She also plans to add organic, cage-free chicken wings.
 
Additionally, Jagtap plans to add wait staff to double her staff from three to six.
 
Source:  Anisha Jagtap, owner and executive chef of Baltimore Burger Bar.
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]

Downtown Baltimore will have a new fitness venue with West Coat flair this fall.
 
Pop Physique, an exercise studio franchise that originated in Los Angeles will add a studio at 339 North Charles St. Sept. 10. Owner Kim Quinn plans on opening more Pop Physique studios in the city within a year, looking at possible locations in Federal Hill, Fells Point, or Hampden.
 
Created by former professional ballet dancer Jennifer Williams, Pop Physique classes are hour-long workouts that combine ballet, Pilates and light weight work designed to tone and sculpt the body.
 
Quinn, originally from upstate New York, wanted to open a Pop Physique somewhere on the east coast and chose Baltimore. “I did research on Baltimore about its young urban population. It fits our targeted age demographic of 25-to-40-year-olds,” Quinn says.
 
According to Downtown Partnership of Baltimore Inc., more than half of all Baltimore residents are between the ages of 31 and 54. 
 
Pop Physique instructors from California will come to Baltimore next month and select five local instructors after a tryout. Quinn will also be trained as an instructor.
 
Each class holds 20 people. New clients can get 30 days of unlimited classes for $100. Other package deals will be available as well.

The Baltimore will be Pop Physique’s 13^th location nationwide.
 
Writer: Jolene Carr
Source: Kim Quinn, Pop Physique

There's a new place for Canton residents to indulge their cravings for sashimi and a spicy tuna roll.
 
The Sushi Place opened this month at 2224 Fleet St. in a space formerly occupied by Tijuana Tacos.
 
The business is the first restaurant for co-owners Billy Malkin and Eugene McDowell who  work as contractors. Construction and renovation on the location started three months ago and the space has been totally gutted and remodeled as a 23-seat restaurant, says Manager Ron Choi.
 
The Sushi Place offers of menu of nigiri, sashimi, and specialty rolls, which include a spider roll with deep-fried soft shell crab and spicy mayo and the yellowtail basil roll made with yellowtail and topped with mozzarella cheese, tomato, and balsamic vinegar.
 
Prices for the specialty rolls range from $12 to $15, and appetizers range from $4 to $7.
 
Choi says restaurant management aspires to specialize in great customer service and wants to create a friendly, neighborhood sushi bar atmosphere.
 
"We kind of felt that when people come home they don't want to leave their parking spots, so we kinda felt like this is a good idea. We'll specialize in the people that live around Canton. It's a great neighborhood, great people live in Canton," Choi says.
 
The restaurant employs 10 and is currently hiring for sushi chefs, delivery people and servers.
 
The Sushi Place opens daily at 12 p.m., and closes at 9 p.m. except on Saturdays and Sundays when it stays open until 11 p.m.
 
 
Source: Ron Choi, manager of The Sushi Place
Writer: Alexandra Wilding, [email protected]
 

StraighterLine, a Baltimore startup that recently got $10 million in venture funding, will soon move out of its incubator into a place of its own.

Seeking to accommodate its expanding staff, the company plans to relocate as early as Aug. 1 to a new, 6,000-square-foot office, tripling its space, says Marketing Manager, Steven Pope.
 
Its current space in The Johns Hopkins University Eastern Campus at 1101 E. 33rd St. in Waverly is 1,900 square feet and part of the Emerging Technology Center.
 
The company is still firming up a location, but the new space will be "five to 10 minutes away" from its present office, Pope says. 
 
"(We are) trying to capitalize on the market's readiness for a change in the education industry. We're trying to become the Amazon of online education. That's obviously a big goal, but we're one step closer to achieving it this year because of our expansions," Pope says.
 
The relocation is being supported by a $10 million investment to the company made in part by FirstMark Capital, a New York venture capital firm. CityLight Capital and Chrysalis Ventures also contributed to the investment.
 
Since the beginning of the year, the company has grown from 11 employees to its current staff of 22. It plans to grow to 30 employees in the next few months, Pope says.
 
The company is currently hiring subject matter experts and marketing and  software development staff.
 
StraighterLine provides entry-level, online college courses for credit in a variety of subjects. They follow a self-paced, independent study approach to online learning. Students can transfer courses taken at StraighterLine to a variety of partner colleges that offer degrees.
 
Pope says that with students facing mounting college debt, the company aims to offer low-cost and low-risk college credit options.
 
CEO Burck Smith founded the company in 2009 after launching Smarthinking, an online tutoring company.
 
 
Source: Steven Pope, marketing manager.
Writer: Alexandra Wilding, [email protected]