Baltimore Grows

Yesterday’s article in the Baltimore Sun on the proposed Westport development was interesting.? It was a good article about the city’s push to include moderate & low income housing in the new project.? What I found funny was the accompanying artist rendering of the project? which features a Porsche, BMW (I think), Starbucks, Westport Bistro, and Whole Foods.? Perhaps the low-income residences are tucked just out of view around the corner.

All this talk about crabs has got me thinking of shells. Not hardshell crabs, mind you- rowhouse “shells”.

A “shell” is a rowhouse that has the brickwork and roof and structure still in good shape, but the interior could range from completely gutted to very tatty to very decent. You’re gonna get the biggest bang for your housing buck in a shell. A good shell isn’t easy to find.

Mortgage lenders won’t lend on a house that isn’t up to code. So unless you’re buying a shell for cash, you have to find one that’s in (at least somewhat) livable condition. This means that the electric and plumbing and heating are operational. Finding that “sweet spot” of a shell that’s a bargain and up to code yet still below market price is the Holy Grail of Real Estate.

If you want to go shell hunting with me, what I ask is that you sign a standard “Buyer’s Agency” agreement and also that you have a letter from a lender saying you’re credit worthy. I’m on the prowl for the perfect shell… anyone want to tag along?

http://www.joshuaberlow.com/real2.htm

Martin O’Malley announced that the state will help the University of Maryland finance a $400 million dollar bioscience research facility on its Baltimore campus as part of the state’s 1.1 billion dollar life science initiative.? Construction of the project could begin as soon as 2009.? The project will add to the already growing biotech and life science industry.? University of Maryland recently completed Phase II of its bio park.? Johns Hopkins University also completed the first building in the East Side Science and Technology Park.

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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/real2.htm

*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…

I purchased a home in the Union Square/ Carrolton Ridge neigborhood about a year ago because of its proximity to downtown and all the major interstates.? Yeah, it was a diamond in the ruff but there are a number of rehabs going on in this area, the newest being my next door neighbor.? Aside from the Universtiy of Maryland Bio Park crossing over MLK, the 400k townhomes adjacent to the B&O railroad on West Pratt Street, is there anything else that I should be excited about purchasing my first home on the Westside of Baltimore City?? ? Are there some other projects that someone? knows about? that I don’t?? I’d love some feedback.

I managed to get a tour of the recently renovated Bromo Seltzer Tower.? The renovations were quite amazing, especially considering the shoestring budget which the Baltimore Office of Promotion and the Arts and contractor Azola and Associates? had to work with.? The Bromo Seltzer Tower once housed the executives for the Bromo Seltzer Company.? The factory which once surrounded the building was torn down long ago and is now occupied by a Baltimore City Fire Station.? The tower was the tallest building in Baltimore for quite some time.? Supposedly, the huge bright blue bottle that used to sit on top of the building could be seen from as far away as the Eastern Shore, although I’m not too sure about that.

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The Baltimore Office of Promotion and the Arts (BOPA) are looking for artists to lease the studios in the building.? Currently the building is about 1/3 leased.? BOPA also is looking for a coffee shop to lease the lower level of the building.? The coffee shop would double as an art gallery for the buildings artists.? Visit www.bromoseltzerartstower.com? for more information.? Hopefully the building’s artists and visitors will add to the vibrancy of the downtown area and west side.

It was announced today that Baltimore City and the University of Maryland, Baltimore Campus have reached an agreement to open a new university bookstore on the northeast corner of Baltimore and Paca streets, just west of the Hippodrome Theatre.? The new bookstore will be operated by Barnes and Noble.? Even though the university could have placed the bookstore in one of their existing buildings, the thoughts are that a bookstore in this location would be a greater boon to the West-side revitalization.? In all likelihood, the University of Maryland Barnes and Noble will be similar to the recently opened Barnes and Noble associated with Johns Hopkins University in Charles Village.? Main complaints about these university bookstores are that they lack the kind of book selection that a standard Barnes and Noble would carry, since their main focus is textbooks.? No word on construction schedule or format for the recently announced store.

The city is currently studying a plan to build a 10.5 mile subway project running east to west connecting Canton through downtown? and West Baltimore to Woodlawn.? Stops are proposed in Fells Point, downtown,? and other highly trafficked areas.? The study and analysis has been under way since 2003, and is scheduled to continue through 2008.? Construction would begin in 2012 and be completed in 2016.? Of course with the way these projects generally evolve, it would be amazing if the Baltimore Red Line became a reality before 2020.

It’s not clear how much of the red line would be above or below ground.? But obviously most of the proposed route would need to be under ground.? The projected route certainly will be connecting some diverse (racially, socially, financially) neighborhoods.? It will be interesting to see what that does to property prices around the new stations.? In DC areas? sometimes flourish after metro stops open in that neighborhood.? In many cases close proximity to a metro stop? becomes a prerequisite for redeveloping and gentrifying areas.

One of Baltimore’s biggest weaknesses as a city is the lack of good public transportation.? I sometimes have to call and wait 25 minutes for a cab to show up.? And I only live 5 minutes from downtown.? I have lived or worked in the city for close to 8 years, and I have still yet to set foot on the Baltimore metro.? I have never had the need or desire.? With this project Baltimore is certainly heading in the right direction.? With projects like this maybe more Baltimoreans will start to use the cities metro system – or at least realize we have one.?