Development News

Local small business owners are taking advantage of lower retail rents, helping the Baltimore market slowly recover from the recession.

That is according to MacKenzie Commercial Real Estate's retail report for the first quarter of 2011. The greater Baltimore region had an overall retail vacancy rate of 6.3 percent, down from 7.1 percent a year ago.

Several of new businesses to open were restaurants, including Black Olive Agora, Mari Luna Bistro and Ooh La La Cupcakery.

Vacancy rates varied by region, according to the report. Carroll County had the lowest rate, at 4.8 percent. Parts of Baltimore City had vacancy rates around 10 percent.

Retail rents dropped nearly $2 per square foot, to $17.62, compared with a year ago as landlords continued to make concessions to fill empty storefronts.

"The activity for independent businesses is on the uptick," says John Schultz, MacKenzie's senior real estate advisor. "I just hope it leads to actual deals being made" in the future.

Writer: Julekha Dash
Source: John Schultz, MacKenzie Commercial Real Estate

LifeBridge Health is doubling its number of physical therapy clinics in the next 15 months, with plans to spend up to $2.4 million on the new offices.

The health care group sees an opportunity to expand its reach in rehabilitation services as the baby boomers age and people stay active longer, says Matt Carlen, executive director of LifeBridge's wellness division.

"People are more active and more aware of what physical therapy can do for them."

LifeBridge Health this month opened its sixth physical therapy clinic in Reisterstown. Its services include back and neck care, orthopedic physical therapy, work injury, and neurological rehabilitation. LifeBridge Health's other physical therapy clinics are in Eldersburg, Owings Mills, Timonium, Pikesville, and Towson.

North Baltimore County and West Baltimore City will likely hold future physical therapy clinics, Carlen says. The new clinics will employ a total of 50. The new physical therapy clinics will involve building new offices and taking over existing ones.

LifeBridge Health is composed of Sinai Hospital, Northwest Hospital, Levindale Hebrew Geriatric Center and Hospital, Courtland Gardens Nursing and Rehabilitation Center, and LifeBridge Health and Fitness.

Writer: Julekha Dash
Source: Matt Carlen, LifeBridge

Sandwiches, soups, and burritos are staples of the casual dining scene.

But soon falafel, hummus, and eggplant fries will be as ubiquitous as soup in a bread bowl if four Maryland entrepreneurs have it their way. The owners of Tahina's Mediterranean Grill in Owings Mills recently received their franchising license in Maryland and Virginia and are hungry for franchisees who can open 10 stores in the next year, Partner Jeff McCabe says.

Towson, Columbia, and downtown Baltimore are some of the locations that interest them. McCabe says he thinks the store could do well in both strip centers and malls in high-volume, busy areas.

Each store would cost between $140,000 and $280,000 to build. It would average around 1,3000 square feet.

Tahina's setup is similar to that of Subway or Chipotle. Customers select whether they want a salad bowl or pita pocket sandwich. Then they select a protein (chicken, beef or falafel), followed by an array of toppings that include olives, carrots, eggplant, chickpeas, and a cucumber-and-tomato salad.

"We wanted something unique," McCabe says of the restaurant concept. McCabe, who owns a restaurant design firm, says he believes Mediterranean food is a void in the casual dining market.

His partners are Jory Schunick, Morris Scherlis, and David Levitt, a former Outback Steakhouse executive.

Writer: Julekha Dash
Source: Jeff McCabe, Tahina's

The Maryland Hall for the Creative Arts is looking to spruce up its aging performance space in Annapolis.

The theater and auditorium, which date to 1932, will get new seating and carpeting and upgraded acoustics as part of the multiyear plan, says Donna Anderson, the nonprofit's vice president of external affairs.

Details, such as the cost of the facelift and completion date, are still being worked out. The arts organization is still in negotiations with an architecture firm to handle the job.

The renovations would include the 850-seat theater and another room beneath it that holds classes, recitals, meetings, and post-theater receptions. As a former high school gymnasium, the room has its limitations, Anderson says.

Leaders at the arts organization want to spruce up that space and add a loading dock to the theater wing.

The Maryland Hall for the Creative Arts is home to four resident companies -- Annapolis Chorale, Annapolis Opera, Annapolis Symphony Orchestra and the Ballet Theatre of Maryland. The nonprofit also holds an artist-in-residence program and art, music and dance classes.

Writer: Julekha Dash
Source: Donna Anderson, Maryland Hall for the Creative Arts

The Maryland Transportation Authority will issue a bid this spring for the redevelopment and operations of the aging Maryland House and Chesapeake Travel Plazas.

The redevelopment is expected to occur via a public-private partnership. An outside firm would incur the costs to design and rebuild the travel plazas in Harford and Cecil Counties in exchange for a long-term contract to manage them, transportation spokeswoman Kelly Melham says.

The agency doesn't have an exact date for issuing the bid, but has given notice to the Maryland legislature that it intends to do so, Melham says.

HMSHost Corp. of Bethesda currently operates the retail and food service in the travel plazas.

The transportation agency had originally been scheduled to issue a bid in the fall, but canceled the plans after repeated revisions to the plan and several extensions to the deadline.

The Maryland House Travel Plaza in Aberdeen dates to 1963. The Chesapeake House Travel Plaza in North East opened in 1975.

Writer: Julekha Dash
Source: Kelly Melham, Maryland Transportation Authority

Entertainment Cruises Inc. is pumping $1.2 million into its operations in Baltimore's Inner Harbor.

The company is spending about $750,000 to add a second speedboat and another $500,000 to make one of its dinner cruise boats more fuel efficient, General Manager Dan Leaman says.

The company is replacing two old engines in its Spirit of Baltimore boat with Tier 3 engines that are more eco-friendly. The boat should use 79,000 fewer gallons of diesel fuel over its lifetime, Leaman says.

Entertainment Cruises will start running Seadog VI, its second speedboat, April 14. The company expects to hire about 20 employees to sell tickets and staff the boat.

The boat, which can accommodate 106 passengers, takes visitors on a 50-minute sightseeing tour from the Inner Harbor to Key Bridge and back.

The company's first Seadog boat ferried 21,000 passengers last year. Entertainment Cruises hopes to double that number this year with the second boat, Leaman says.

Based in Chicago, Entertainment Cruises oversees 24 ships in seven other cities: Boston, Chicago, Norfolk, Va. Philadelphia, New York, Washington, D.C., and Weehawken, N.J.

Writer: Julekha Dash
Source: Dan Leaman,

Saint Agnes Hospital is building a residence that will house the families of patients with long-term illnesses.

Willard Hackerman, CEO of Whiting-Turner Contracting Co., and wife, Lillian Patz Hackerman, donated $2 million to support the building. To be completed in spring 2012, the Hackerman-Patz House will initially house the Daughters of Charity, the nuns that founded the Catonsville hospital.

The 16-room residence will eventually be equipped with "hotel-style" services, such as housekeeping and a check-in desk for guests, says William Greskovich, the hospital's vice president of operations.

As of now, there is no place for patients' families traveling from outside the state to stay on the hospital campus, Greskovich says.

The 13,000-square-foot, two-story, building will also include a chapel, kitchen, dining room, and community room.

A 314-bed hospital, Saint Agnes was founded in 1862 by the Daughters of Charity to serve the poor. It includes a Cancer Institute, a Women's and Children's Health Institute, an Orthopaedic and Spine Institute, and a Cardiovascular Institute.

Hackerman-Patz houses are located on the campus of other Greater Baltimore hospitals, including Sinai Hospital and Johns Hopkins Hospital.

Writer: Julekha Dash
Source: William Greskovich, Saint Agnes Hospital

Organic products are sprouting up all over the place � milk, meats, apples, cleaning supplies.

Now the organic trend has hit the beauty industry. Two Baltimore women, Ambra Black and Maryam Dennis, are opening an organic nail salon mid-May in Locust Point.

Juste-B., to be located at 1624 E. Fort Ave., will offer manicures and pedicures and soy-based waxes. The scrubs and other products used on hands and feet will be made with essential oils and natural sugars, Dennis says. Nail polishes are water-based and don't rely on any chemicals.

The partners, who are spending $30,000 of their own money to start the business, will make their own foot scrubs using herbs from their herb garden.

Juste-B will be one of a handful of organic salons in Greater Baltimore. Others include Hampden's Sprout and Insignia in Overlea.

"We should be able to be healthy and beautiful without having to sacrifice the health of the planet," Dennis says.

Juste-B will embrace other green initiatives, including using light sensors and serving organic wine and vodka to guests. A combined manicure and pedicure will cost about $40.  

The business owners chose Locust Point because it's a "new and upcoming neighborhood." With office and retail developments like McHenry Row, to be anchored by a Harris Teeter grocery store, underway, the business owners hope to get in on the area before it really builds up.


Writer: Julekha Dash
Source: Maryam Dennis, Juste B

Maryland may once again roll out the red carpet for Hollywood productions.

State legislators are weighing a bill that would dramatically raise the amount of rebates Maryland offers film crews from $1 million to $15 million.

That would make the state more competitive for silver screen productions, after losing film business to other states. Maryland has cut its incentives over the last few years from a high of $7 million in 2007 to $1 million this year.

Sponsored by Democratic Sen. Edward J. Kasemeyer, Senate Bill 672 would raise the film incentives' budget to $15 million. Kasemeyer represents Baltimore and Howard Counties. Del. Melony G. Griffith, D-Prince George's County, has sponsored the corresponding House Bill.

The Senate bill passed the Budget and Taxation committee. House Bill 1148 is being heard by the Ways and Means committee. Under the incentive program, film crews that spend at least $500,000 receive up to a 25 percent rebate on their expenses incurred in the state.

The money would get Maryland back on a level playing field with other states, says Jed Dietz, director of the Maryland Film Festival.

"It would make a huge difference in this industry," Dietz says.

Film advocates decry losing out on "The Curious Case of Benjamin Button." The $150 million budget movie starring Brad Pitt and Cate Blanchett was set to shoot in Baltimore, but filmmakers rewrote the script and chose Louisiana, which has no cap on the amount of money it spends annually on film crews.

Though the state is staring at a massive deficit, growing the film incentive program will reward the state financially by bringing jobs and spending, Dietz says.

According to Sage Policy Group, film crews generated $158 million in economic impact in Maryland in fiscal year 2006 when funding was at its highest.

Writer: Julekha Dash
Sources: Maryland legislature; Jed Dietz, Maryland Film Festival

The owners of an eight-year-old Locust Point spa have renewed their lease and will begin renovations next month to polish up the space.

Studio 921 Salon & Medi Day Spa will get new floors, tiles, and front desk area to give it a "funkier, edgier" feel, customer service manager Carolyn Devlin says. The renovations, to start April 4, will cost around $200,000.

Owners Judy Sulisufaj Kelly and Colleen Smith have hired local furniture designer Jonathan Maxwell to design an industrial-looking front desk area, using wood and stainless steel. The lobby and entryway will get new tile floors and cherry wood will replace the tan parquet floors in the salon.

The owners also plan to tear down a wall in the salon so they can add two more styling stations that can accommodate up to four more stylists.

On the spa side, Studio 921 will get new women's locker rooms, carpet, and cabinets.

Named a best place to work by Baltimore magazine for offering a 401(k) and paid vacation, Studio 921 managers hope a rejuvenated salon will give its 50 employees another reason to stay, Devlin says.

The owners have extended their lease at the Foundry on Fort, a complex that also includes the Wine Market and Merritt Athletic Club.

Writer: Julekha Dash
Source: Carolyn Devlin, Studio 921

Five Below, the discount chain where everything costs $5 or less, is opening a new Glen Burnie outlet as it launches an aggressive national expansion. The new shop at 6720 Ritchie Hwy., to open this summer, will be Five Below's 20th Maryland store.

Five Below also just opened a store in Catonsville and an expanded store in Severna Park March 25.

The Philadelphia company plans to open a total of 50 stores nationally in 2011 to feed the appetites of bargain-hungry consumers, Five Below Marketing Manager Elizabeth Romaine says.

The company is looking at additional opportunities in the Baltimore and Washington, D.C., markets, Romaine says. The company looks for markets with large concentration of families since much of its merchandise is geared toward kids and teens.

Five Below currently operates 141 stores in 13 states.

Each Five Below store employs about 35 and is around 7,500 square feet.

The expanded Severna Park store, at 558 Gov Ritchie Hwy., is now twice its former size, with bigger aisles and a section devoted to party supplies. Five Below stores also sell fashion accessories, toys, video games, candy, and sports and fitness equipment.

Writer: Julekha Dash
Source: Elizabeth Romaine, Five Below

Gilchrist Hospice Care is set to debut its second inpatient center and its first in Howard County this spring. Located within an assisted living facility in the Howard County Health Park, the $1.7 million, 10-bed unit will house a chapel, common area for families, and garden.

Howard County patients and their families have been asking for an end-of-life care center closer to them than Towson, Gilchrist's main hospice center, Gilchrist's Director of Development Lori Mulligan says. Gilchrist cares for about 100 Howard County patients per day.

The hospice is currently raising $2.5 million to pay for the construction costs and defray the costs of providing care that exceeds insurance payments. So far, it has raised $700,000 from foundations and individuals in the community, Mulligan says.

The Howard County center is modeled after Gilchrist's Towson facility with oriental rugs and wood floors.

"We try to make it look warm and inviting," Mulligan says. "It's been described as a Swiss chalet," Mulligan says of the hospice centers' look.

The new facility will be located within Lorien Harmony Hall Assisted Living. 

Gilchrist Hospice Care is a subsidiary of GBMC HealthCare.

Writer: Julekha Dash
Source: Lori Mulligan, Gilchrist

Suds and grub will return to the Fells Point spot that formerly held DuClaw Brewing Co. before it closed in late 2009.

Three restaurant operators will open a 200-seat establishment that serves craft beers and upscale pub food.

Michael Mastellone, John Durkin, and Derek Blazer don't have a name yet for the new restaurant, to open in September. Bond Street Social is the name on the liquor license application, but that name is not set in stone, Mastellone says.

Durkin and Mastellone own Ladder 15, a Philadelphia bar and restaurant located in a former firehouse. Durkin is also owner of Federal Hill's Mad River Bar & Grill.

The partners will spend more than $1 million to revamp the interior of the former DuClaw space, Mastellone says. He's hiring T+Associates Architects, the same designer as Ladder 15, to outfit the new space, and imagines the new space will sport an industrial look, with steel and wood.

The owners hope to draw people in the summer months with the nearly 2,000-square-foot outdoor waterfront dining area. The restaurant's half a dozen fireplaces will hopefully draw diners in the winter months as well, Mastellone says.

The menu will be similar to that of Ladder 15, except with a heavier emphasis on seafood, Mastellone says. Korean tacos, made with pork belly and short rib, oxtail cheesesteak, and truffle fries are some of the menu items at the Philly eatery.

Prices will run about the same as well, with appetizers under $10, sandwiches and burgers $9-$11 and entrees running between $12 and $25.

Writer: Julekha Dash
Source: Michael Mastellone, Ladder 15

A nonprofit is building a center to treat homeless veterans with drug or alcohol addictions in the Sandtown-Winchester neighborhood of West Baltimore.

The center at 1611 Baker St. will cost the Baltimore Station $2.3 million to build and acquire the property, executive director Michael Seipp says.

The west Baltimore site currently houses a former Catholic Rectory and two rowhomes. The 16,800-square-foot Baker Street Station will be the nonprofit's second treatment center.

Funding for the center comes from four sources: the Department of Veterans Affairs, the Maryland Department of Health and Mental Hygiene, the Abell Foundation, and the France-Merrick Foundation.

The Baltimore Station is also hosting a fundraiser April 14 in Federal Hill's Cross Street Market to raise money for the new center.

Many military troops in Iraq and Afghanistan are being asked to serve multiple tours of duty, which puts them at a higher risk of getting post-traumatic stress disorder, Seipp says. And many of these men turn to alcohol or drugs, which, in turn, can lead to homelessness.

Veterans represent about one-quarter of all homeless people, twice that of the civilian population, according to the center's statistics.
The Baltimore Station employs 28 and has a $2 million annual operating budget.

Writer: Julekha Dash
Source: Michael Seipp, Baltimore Station

A technology company is doubling its space as it outgrows its office in Howard County.

NewWave Telecom & Technologies Inc. has signed a lease with Merritt Properties LLC for 8,165 square feet of space at 6518 Meadowridge Rd. in Elkridge. The company will move in June, says NewWave Director of Operations Sherifah Munis.

"We've completely outgrown the space now," Munis says of their current home at 6095 Marshalee Dr. in Elkridge. "If we hired additional employees, we wouldn't know where to put them."


Munis says the company's staff decided to stay in Elkridge because they like the accessibility to the Baltimore Beltway, Interstate 95, and Route 29. The central location makes it easy to get to Baltimore or Washington, D.C.

A big area of focus for NewWave is health care technology, a growing concern for the federal government.

Its clients include the Centers for Medicare & Medicaid Services, for whom it provides technology support for its Electronic Health Record Demonstration Project.

Part of the federal health care reform law, the project provides Medicare incentive payments to primary care physicians who use certified electronic health records. The goal of the project is to reduce medical errors by putting paper records in an electronic format.

Writer: Julekha Dash
Source: Sherifah Munis, NewWave Telecom & Technologies