Commercial Real Estate : Innovation + Job News

The logistics of opening a new business can be tricky. When pursuing the idea to start a venture, entrepreneurs are faced with the choice of keeping overhead low by working from home, or engaging premises to have meeting space. That's where co-working environments like Capital Studios come into the picture.

"I travel a lot and have seen co-working spaces here and there. We wanted something very general that a lot of different groups felt comfortable in," says Mike Morris, a real estate professional who founded Capital Studios with partner Kevin Hollins.

Just opened on Bank Street, Capital Studios in The Tack Factory offers startups and entrepreneurs the opportunity to engage office space that's flexible and still affordable. Their open-plan space features modular work stations, equipped conference rooms, and office equipment. There's no concern for a budding business to get the utilities turned on or furnish an operating space. The decor is minimalist and modern. Work space, including access to conference rooms, can be rented on a daily or monthly basis.

"What this is really geared toward is the person working at a Starbucks who wants to have their mail delivered here, have a meeting, talk to the person sitting next to you," Morris says.

The newly opened facility has the capacity to provide the base for dozens of startup firms and small businesses. There are currently a dozen businesses based at Capital Studios full time. The current crop of small enterprises at Capital Studios has a tech focus. The list of firms calling Capital Studios home includes graphic designers, programmers, foreign currency traders, and members of the staff of the Baltimore division of Citybizlist.

Capital Studios is expanding the facility and will be offering additional work spaces in the near future.


Writer: Amy McNeal
Source: Mike Morris, Capital Studios

Scarborough Fair Bed and Breakfast is celebrating. The Federal Hill inn was recently awarded a Certificate of Excellence by travel site TripAdvisor in recognition of their 248 perfect reviews.  

"We are very happy that all of our hard work and genuine care for our guests is noticed and appreciated. Few understand the amount of emotional and physical labor that goes into not just being an innkeeper, but being a good one," says Innkeeper Barry Werner.

Scarborough Fair's Certificate of Excellence from TripAdvisor is also a plum for the Better Baltimore Bed and Breakfasts Association, which  Werner helped to found. The association was established to unite bed and breakfast owners in the city to create promotions and draw attention to Baltimore's growing bed and breakfast scene. With the addition of the award to Scarborough Fair, five of the seven inns in the association have now received Certificates of Excellence from TripAdvisor.

"I think this award will help us to get many more reservations in the upcoming year. With so many of our association's members winning as well, it shows that our group of B&Bs are literally offering some of the very best accommodations available," Werner says.

Currently, Scarborough Fair is beginning planning and promotions for their annual "Scarecation Celebration" in October, celebrating haunted history and attractions in Baltimore.


Writer: Amy McNeal
Source: Barry Werner, Scarborough Fair Bed and Breakfast

Baltimore's TownePlace Suites by Marriott at BWI Airport is the first LEED for Existing Buildings Gold certified green hotel in Maryland. It is also the first existing hotel among Marriott's 3,400-hotel worldwide portfolio to receive that certification.

Its innovative environmental practices range from green cleaning in guest rooms to composting all of its waste to low-flow plumbing devices and use of low-mercury and compact fluorescent lighting.

"We're thrilled to be named the first LEED Gold certified existing hotel in the state of Maryland," says Michelle Emley, general manager. "The vast majority of our nation's housing stock is older or historic. We know that most homeowners are not in the position to design and build a new green home, but they can incorporate simple, sustainable practices in their existing homes."

"A central belief of green building is that our economic, environmental, and personal health is dramatically impacted by the places where we live, work, learn, shop, eat and play," says Chris Smith, COO of the U.S. Green Building Council. "The owners of the TownePlace Suites by Marriott at BWI Airport recognized this early on, and their foresight has resulted in Maryland's first existing hotel to be certified LEED Gold."

Source: TownPlace Suites
Writer: Walaika Haskins

The first phase of a major redevelopment initiative in Baltimore's Barclay/Old Goucher neighborhood got underway last week. The innovative $85 million dollar redevelopment plan for the neighborhood was developed by community residents, neighborhood organizations, local developers, neighborhood social service providers, and city officials, in collaboration with urban/housing developer Telesis Corporation. The redevelopment plan will provide a range of housing opportunities including market rate and affordable housing, offered both for sale and for rent, in addition to new parks and community facilities and services including a Youth Safe Haven.

The first phase of the redevelopment will provide 72 units of affordable rental housing, 35 units of for-sale housing, and neighborhood jobs. Construction of the affordable rental housing, with a mix of new construction and rehabilitation, started in June 2010. In partnership with Healthy Neighborhoods, Telesis secured a $4.7M allocation of Neighborhood Stabilization Program 2 funds from the federal government, which will be used to rehabilitate homeownership properties. Construction of the homeownership units is scheduled to begin in late 2010. 

This redevelopment initiative is part of a larger, multi-party effort to redevelop the Barclay/Old Goucher neighborhood and bring new opportunities and a better quality of life to the community. Deteriorated housing and high vacancies have left their mark on this architecturally sound neighborhood with committed community leadership.

In June 2007, Baltimore Housing and key community partners created the Barclay/Old Goucher Redevelopment Plan, strategically identifying redevelopment locations in the neighborhood. Telesis Corporation was awarded 268 parcels from Baltimore Housing, to be redeveloped in four phases that will complement the community investment initiatives, both underway, and recently completed. While Telesis focuses on the awarded parcels for redevelopment, many nearby organizations are contributing to the neighborhood revitalization by improving community gardens, rehabilitating privately owned homes, and establishing after-school programs for at-risk children. The result of this major, ongoing redevelopment effort will be a safe, stable, mixed-income community with a range of housing opportunities and community services.

Source: Housing Authority of Baltimore City
Writer: Walaika Haskins

The Housing Authority of Baltimore City has released the city's Green Building standards. Developed in partnership with the Planning Department, the Baltimore City Green Building Standards are meant to be a quicker, less expensive alternative to the traditional LEED certification currently required under the Baltimore City Code, the agency says.

The standards will apply to newly-constructed or extensively-modified nonresidential or multi-family residential buildings that have or will have at least 10,000 square feet of gross floor area.
 
The new standards are innovative and designed to achieve certification for green buildings with guidelines that work with Baltimore's unique building and land use issues. As awareness of environmental and energy issues has increased, demand for green buildings has also grown. The BCGBS incorporates elements of the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) rating system and will serve as an "incentive" for green development without additional cost to developers. They are also designed to best achieve the goals of the Baltimore Sustainability Plan.

"The development of the Green Building Standards is another opportunity to show the City's commitment to being environmentally responsible," says Mayor Stephanie Rawlings-Blake.

"Baltimore City's Green Building Standards give developers an incentive to go green," says Housing Commissioner Paul T. Graziano. "We understand the challenges facing developers and have created a plan that addresses their needs and our commitment. The new standards are sensible, effective, enforceable, and will be seamless and transparent."

Compliance with these standards will, among other things: protect and restore the City's water supply, reduce Baltimore's urban heat island effect, encourage alternative transportation, and promote and improve access to more green spaces throughout the City.

"Certification for green building projects in Baltimore will take less time, because they will be reviewed as part of the City's existing development review processes," says Tom Stosur, Director of the Baltimore City Planning Department. "Baltimore City is committed to being eco friendly and this is just another step towards that end."

Source: Housing Authority of Baltimore City
Writer: Walaika Haskins

Work has already begun on the City Arts, artist residence located in Baltimore's Greenmount West neighborhood. The project is part of the Station North Arts and Entertainment District and will provide affordable housing targeted to artists, a gallery and performance space.

Homes for America, Jubilee Baltimore, and TRF Development Partners Baltimore are partnering to develop City Arts. The energy-efficient development is slated to bring 69 transit-oriented rental apartments and 8 for-sale townhomes to the neighborhood.

The rental portion of the project is being financed using $2.6 million from the Tax Credit Assistance Program, part of the federal stimulus funding, and the MD DHCD's Low Income Housing Tax Credit program. The tax credits generated an equity investment of $9.3 million from Bank of America syndicated by Enterprise Community Investment. Bank of America is also providing bridge financing and a permanent loan of $1.3 million. MD DHCD also provided the project $135,000 through its Multifamily Energy Efficiency and Housing Affordability Program.

The project is expected to create or retain 168 jobs. The building construction began in December 2009 and is expected to be available for occupancy by January 2011.



Source: Jubilee Baltimore
Writer: Walaika Haskins

Love it or hate it, but Walmart is very likely coming to Charles Village. The big box discount chain announced last week that with the approval from the city it will join the commercial complex currently planned for the former Anderson Automotive site at 115 W. 25^th Street near the intersection of Howard Street.

According to the company,  the store will bring approximately 200 new jobs to the area including positions in store management, pharmacy, human resources, customer service, cashiers and sales associates. Construction will begin this fall with a grand opening tentatively scheduled for the fall 2011.

"This store will deliver outstanding value to customers and create quality job opportunities for local residents," says Walmart Regional Senior Manager Rhoda Washington. "We look forward to building on the partnerships we have established in neighborhoods throughout Greater Baltimore and continuing our support of charitable services that are important to the city."

The 93,000-square-foot store will be located above the previously announced Lowe's Home Center and co-anchor the $65 million, mixed-use "25^th Street Station" development project. The developer, WV Urban Developments LLC, expects to sign additional specialty retailers to the 11-acre project, which also will include residential units along Maryland Avenue. In total, this project is expected to create 400 construction jobs and up to 750 permanent jobs.

The new store also will include energy-efficient technology and environmentally friendly features to reduce energy and water consumption and minimize waste with a vegetated green roof, high-efficiency lighting, low-flow toilets and faucets as well as recycled and sustainable building materials.

In recent months, Walmart has taken major steps to refresh its stores, merchandising and customer experience. The improvements have all come together in the company's newest locations with faster service, a friendlier shopping experience and cleaner stores.

"This store will features wide aisles, enhanced service and a layout designed to make the shopping experience more convenient for customers," adds Washington. "The layout will be easy to navigate, which will save our customers time as they shop for everyday necessities."

"We are extremely excited to have added Walmart to 25th Street Station," says Jon Laria, a  attorney for the project with  Ballard Spahr. "We were originally looking for a good grocery store and that was our plan when we held our first community meetings in December. We soon began to realize that we were not going to find an acceptable grocery store in the current market, and fortunately Walmart approached us after seeing early news coverage of the project."

With few, if any, other retailers out there that could provide both fresh, healthy, local produce and other foods, as well as the general merchandise shopping that many community members told Ballard Spahr they need and which barely exists in the city, Walmart was an excellent solution, says Laria. 

"Its flexibility to build a smaller store, combined with its extraordinary commitment to sustainability at the store and throughout the company, made it even better. We're also happy that Walmart will bring 200+ jobs at all skill levels, helping us meet our expected goal of over 700 jobs for the entire project," he adds.

The combination of Walmart and Lowe's will help ensure that the site is redeveloped and doesn't become a vacant parcel in the midst of several important City neighborhoods, according to Laria. "We also think the added activity and vitality will help existing businesses in the neighborhood and attract new ones. Business activity will attract more business activity."

Thus far, Laria says, they've been "really pleased" with the feedback from the community and the city that has included constructive suggestions about how to make the project better. "We're going to continue working on it with our community partners through the City's design review process, and know we'll have a project that works both for the retailers we expect to attract as well as our community neighbors."


Tell us what you think.



Sources: Rhoda Washington, Walmart; Jon Laria, Ballard Spahr.
Writer: Walaika Haskins

Merritt Properties, one of the Mid-Atlantic region's leading commercial real estate developers, announced the launch of its commercial real estate application for the iPhone Monday. The app is the first to be released by a commercial real estate developer and is available immediately as a free download from the iTunes App Store.

"We have been looking at ways that we could utilize new technologies to talk to our customers as well as brokers. And we'd already been utilizing Facebook and Twitter and LinkedIn. So this is sort of a natural evolution of that process. We saw the iPhone app as a way to make our information more readily accessible. It's the digital age and people want access to information on a more mobile platform for when they aren't sitting at their desk," says Melissa Teague, Merritt Properties spokesperson.

"Increasingly people are in their cars or in meetings and they need information. This is another way to provide that information. What's unique about it, especially for our brokers is that this provides real-time information that they couldn't get using Costar.

The commercial property search application can also be used on Apple's iPod touch, making Merritt's portfolio of 16 million square feet of commercial real estate easily accessible to brokers and prospective and current customers on a mobile platform. Download the app from the landing page on Merritt's website.

Merritt Properties iPhone App Features:

· Customized Commercial Property Search: Results can be sorted by property type (industrial/warehouse, flex/warehouse, office and retail), square footage (minimum and maximum), city (throughout Central Maryland and Northern Virginia), radius and space availability.

· Commercial Property Profiles: Search results include the property address, building type, a photo or rendering, overview of building specs, available space details, floorplans and Merritt contacts.

· Map & Driving Directions: Google Maps show location details and driving directions from any location.

· Forwarding: Listings can be forwarded to another phone or email address.

· Automatic Updates: Automatic updates reflect real-time data as properties are leased, completed or become available.

· News Updates: The latest news from Merritt Properties can be viewed and shared.

The company chose to initially develop the application for the iPhone because it has the largest share of the smart phone market, but build-outs are planned for both the Blackberry and Google Android operating systems. In the meantime, Blackberry and Android users can access the commercial property search function via Merritt's mobile website.

To make the company fully accessible to clients, however they choose to communicate, Merritt is also using a texting application that sends property-specific details to any mobile phone and has established a Twitter channel, Facebook fan page and LinkedIn group.

Source: Melissa Teague, Merritt Properties
Writer: Walaika Haskins

Gov. Martin O'Malley hopes to create a new tax credit he believes will boost smart and sustainable growth in Maryland's historic areas and existing communities well-served by transit and infrastructure. The Sustainable Communities Tax Credit program, $50 million, three-year program, will help create construction and rehabilitation jobs, revitalize neighborhoods, and spur economic development with each project.

The new program will replace and improve upon the 14-year-old Heritage Structure Rehabilitation Tax Credit program, which is set to expire in June.

"The program represents the best of public investment and private enterprise as we continue to seek ways to fuel economic growth and create jobs," says Gov. O'Malley. "The success of the program in recent years cannot be understated. These projects will help revitalize historic communities, strengthen a green economy throughout our State, and create new construction and rehabilitation jobs in every corner of Maryland."

The existing Heritage Tax Credit has invested more than $347 million in Maryland revitalization projects since 1996. Those projects have produced more than $1.5 billion in total direct rehabilitation expenditures by owners and developers. Coupled with wages, both construction and new jobs, and State and local revenues generated, this equates to more than $8.50 in economic output for every $1 invested by State government.

A report last year by the non-profit Abell Foundation concluded that commercial projects over the life of the program have employed roughly 15,120 people, earning $673.1 million in 2009 dollars. The state's tax credit investment in labor-intensive building renovation has generated 1,850 more jobs than would have been created had the same funds been used for new construction, the foundation reported.

The governor also revealed the latest recipients of some $5 million in Maryland Heritage Structure Rehabilitation Tax Credits for four projects in Central Maryland. Receiving awards. They include:

• Union Mill in Baltimore City: $2,920,000 tax credit for $20,000,000 project by Seawall Development Company to turn vacant manufacturing structure into residential and commercial space.

• Proctor House in Bel Air: $100,000 tax credit for $500,000 project by Kelly Financial Group, LLC to turn vacant/storage space into commercial offices.

• Two projects at the National Park Seminary development in Silver Spring: $800,000 tax credit for $4,000,000 project by the Alexander Company to turn vacant gymnasium into 12 residences. And $1,180,000 tax credit for $5,900,000 by the Alexander Company to turn vacant space and utility structures into 15 residential units.

"New legislation for 2010 seeks to strengthen the effectiveness of the tax credit program as an incentive for smart and sustainable growth," says Maryland Secretary of Planning Richard E. Hall, who chairs the Governor's Smart Growth Subcabinet. "By expanding program eligibility and coordinating it more closely with related state programs, the tax credit will benefit more communities across the state as a critical redevelopment and revitalization tool. One of Maryland's most effective Smart, Green & Growing tools should not be allowed to sunset this year."


Source: State of Maryland, Department of Planning
Writer: Walaika Haskins

Craftsmen Developers, LLC, Daft McCune Walker, Inc. and The Casey Group, Ltd. recently announced the formation of Real Estate Resolutions, LLC (RER MD). RER MD was established to provide comprehensive problem solving services that result in unique opportunities for the distressed real estate industry.

RER MD is an experienced team that can evaluate, analyze, restructure and manage distressed real estate assets. Individually and especially as a group, the team brings incredible experience and knowledge to the real estate and banking industries. The goal of RER MD is to maximize capital recovery by providing a team approach to real estate analysis and problem solving.

According to Thomas H. Repsher, President/CEO of Daft McCune Walker, Inc. those most likely to benefit from RER MD's services are, "attorneys, lenders, asset managers, developers, builders, receivers and servicers, accountants, commercial brokers, portfolio managers, real estate fund managers and investors." Together, the RER MD team is able to attack issues and develop solutions for any real estate, debt or ineffective business strategy and to create Resolutions.

If you know Chinese, you might soon have a reason to use it for more than ordering food at your local Chinese restaurant. Huarui Century Group, a Chinese real estate firm has chosen Baltimore County as the location for its North American headquarters. Based in Shenyang, China, the company provides site location and related services to the ever increasing number of Chinese firms flocking to establish a base of operations in the U.S.

Writer: Walaika Haskins

Source: Maryland Department of Business & Economic Development