Baltimore Grows

The Baltimore Business Journal reported that H&S properties is planning a 280 room Westin Hotel as part of their Harbor Point project adjacent to Harbor East. The article also seems to confirm that the developers will be courting a high end department store, possibly Barneys, to anchor the retail portion of the project. Previous rumors suggested that H&S was also courting Neiman Marcus. With this news, it seems that the Southeast side of the harbor could become the new mecca for shopping in Baltimore, desperately needed since the decline of Howard street over the past few decades.

Click Here to Read the Article

jeffcantonite@yahoo.com

It’s not really Theory #23. It’s theory #1, I suppose. It’s been my theory at least since 1999, when I purchased a house in Baltimore City for myself and my family. The theory is simple and goes like this: Oil is a finite resource. Sooner or later, we’ll run out. There’s no viable alternative to gasoline, and even if there were, there’s already too many cars out there to replace. As gasoline prices rise, houses in the suburbs will drop in value. There will be a corresponding rise in the value of city real estate. Suburbia is predicated on cheap gasoline, whereas cities are from a time before gasoline. Cheap gas is a temporary phenomena. Buy city real estate and sell suburban real estate.

After eight years, it’s safe to say, “I told you so”. Now my theory has been borne out. However in 1999 I was the only one saying it. When I moved from DC to Baltimore in 1999, a real estate investor in the DC ‘burbs told me, “Don’t buy real estate in Baltimore City. It’ll never appreciate”! At the time, buying real estate in the city was risky. In the city you had to deal with crime, drugs, racial issues, bad schools, abandoned buildings, Mayor O’Malley, high taxes, etc etc. As recently as three years ago I posted to another blog about buying in the city and was jumped on by suburbanites. Within the past couple of years two of my neighbors bailed out* and moved to the ‘burbs. This was before $4 gas.

The neighborhood that I bought into has come back big-time since I bought in 1999. I don’t know if I could afford to buy my house if I had to buy it again now. However, there’s still “bad” neighborhoods in Baltimore City. They’re “bad” neighborhoods to some people. I’d say that one man’s “bad” neighborhood is this man’s sweet deal!

http://www.joshuaberlow.com

*In both cases, the houses sold immediately. The only house in the neighborhood that hasn’t sold immediately after being put on the market is one guy who’s holding out for $100K more than any of the others has sold for. Maybe he knows something…

The recently erected tower crane on the site of Harbor Point is a good sign that construction is well underway.  Harbor Point is perfectly situated between Baltimore’s Historic Fells point and new hotspot Harbor East and will eventually connect the two neighborhoods.  Not to mention, Harbor Point juts into the Baltimore Harbor, providing panoramic views of nearly the entire shoreline.  The starting gun for construction was Morgan Stanley’s decision to relocate their Baltimore office to the new development.  Currently, Morgan Stanley occupies a floor of the Bond Street Wharf building in Fells Point.  Morgan Stanley will relocate their 450 existing employees to the new site, but will be adding up to 900 jobs over the next decade.  Morgan Stanley appears to be taking advantage of the Maryland Job market.  Maryland has the most educated work force in the nation but also a lower cost of living than other areas, particularly in Baltimore.  A Morgan Stanley investment banker in Baltimore might have a salary almost two thirds to half of what the employees at their New York headquarters would earn.  There’s no word whether jobs will be relocated from New York or if all of the positions will be new. 

Meanwhile, developers of other projects appear to be taking advantage of the situation.  The developers of the Marketplace at Fells point have revised their plans to include market rate apartments in lieu of the originally planned office building.  The developers will be marketing the project to many of the newcomers that will work at Harbor Point, which is a short walk from Fells Point. 

As some already know - and can probably better elaborate on - the independent film theater chain Landmark Theaters will be opening in HarborEast.  Their website says Winter 2007, but it is rumored to be opening in October.  Yet another reason HarborEast is on fire.

From their website:

Landmark Theatres is the nation’s largest theatre chain dedicated primarily to exhibiting and marketing independent film. Landmark is a recognized leader in the industry for providing consistently diverse and entertaining film product in a sophisticated adult-oriented atmosphere to its customers.

Everywhere you look in Baltimore development is in progress.  The view from our rooftop deck in Locust Point is no different.  There is new construction literally in every direction.

These two shots show the new Ruppert homes in Locust Point under construction.  The development is slated for close to 80 homes.  Silo Point is under construction in the background.

This first photo shows the Silo Point project well under way.  After years of negotiating, stalling, planning, environmental remediation, and demolition - progress is finally visible from a distance.  The 2nd photo shows a pretty common sight around Baltimore these days - the addition of a third story on Woodall street. 

This photo shows one of the last remains of the Chesapeake Paperboard Company in Locust Point.  Construction will soon begin on the “Shoppes at Fort” - a huge mixed use development to include high-end apartments, office, and retail.

These two photos look across the the harbor towards Fells Point and Harbor East.  The large piece of undeveloped land along the waterfront is the former Allied Chemical property.  Development has not been allowed on this land for close to 30 years because the ground was(is) so polluted.  However, this will soon be the site of much more development - the 27 mixed use Harbor Point.

In a month or so I will post again to show the progress at these various sites.