H&S has bakery operations across the Mid-Atlantic and is known for supplying hamburger buns to McDonald's and Wendy's, and Schmidt sandwich bread to supermarket shelves. The bakery turned developer in the 1990s, taking on construction of the Marriott Waterfront hotel and later much of Harbor East, including the Legg Mason tower and Four Seasons hotel.

Observers had speculated on what H&S might do with the distribution center space since the city Planning Commission approved plans for a new facility, at the Hollander 95 business park overlooking Interstate 95. Rumors had also circulated about a possible larger space for the Whole Foods.

"They've been wanting to move to a larger location because that location right there does a tremendous business," Paterakis said. "It's not too much space in there."

H&S's plans come amid other projects sprouting along Central Avenue.

A block north of the distribution center, a team of Baltimore-based Chesapeake Real Estate Group and Bethesda developer Ken Finkelstein plan a Hyatt Place hotel with ground-level retail. A block north of that, Union Box Co. developer Larry Silverstein is redeveloping the Fallsway Spring building at Eastern and Central avenues as a headquarters for local technology company Groove Commerce.

Farther south, near the planned Whole Foods, city transportation officials and H&S's Harbor East Development Group are planning a four-lane bridge to extend to Harbor Point, the 27-acre waterfront parcel where a 23-story office tower is planned for energy company Exelon Corp.



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