Dreams of redevelopment fade for some Rotunda merchants
But mall owner seeks 'boutique' grocer to replace Giant
Shown is Khaled Mohammed leaving Casa Mia's with pizza. The owner of Casa Mia's worries that with all of the vacancies, plus now with the Giant leaving, his business will suffer. (Gene Sweeney Jr. Baltimore Sun)
Malik, a restaurateur, said he and fellow merchants have held out hope for the long-delayed redevelopment of the half-empty shopping center in the Roland Park area. But their pessimism deepened after Giant Food announced it will close its Rotunda store, leaving the mall with only a Rite-Aid for a retail anchor.
"They don't talk about [the redevelopment plan] anymore," said Malik, owner of Casa Mia's, the lone eatery in the 929,000-square-foot center. He predicted that the departure of Giant — which once planned to build a larger, state-of-the-art store in the rear parking lot — "will be bad for the whole building."
But the mall's New Jersey-based owner, Hekemian & Co., said Giant's move actually may prove beneficial, by allowing new plans to be drawn up.
"We've been waiting for two years for Giant to decide what they wanted to do," said Chris Bell, Hekemian's vice president of acquisitions and development. "We are delighted they made a decision."
Hekemian still plans a mix of apartments and retail as part of the redevelopment, and wants to replace the Giant with a "boutique" grocery store such as Trader Joe's. Although there is no start date or timetable for the project, he said, "We are going to push forward with this redevelopment as fast as we can."
Hekemian should be able to attract a new grocery store because of the center's location straddling Roland Park and Hampden, commercial real estate experts said. The more than 110,000 people who live in the center's immediate trade area have an average household income of $98,000, according to Hekemian.
"I don't think there is any issue about the need for an additional grocery store within that trade area," said Thomas H. Maddux, a principal with Towson-based KLNB Retail. Bringing in a new grocery store, and apartments eventually, should help lure additional retailers.
"I'm sure [the developer] is disappointed they can't move forward with the original plan, but many, many projects aren't moving forward as originally conceived," he said. "That doesn't mean there is anything fundamentally wrong with it."
An additional vacancy at the Rotunda could end up working to the developer's advantage, offering additional flexibility when it comes to redesigning the layout of tenant locations, said Geoffrey L. Mackler, a principal at real estate brokerage H&R Retail.
"Layout is what's really important as far as getting retailers interested in the project," Mackler said. Retailers that are expanding often pursue urban core areas, so a project such as the Rotunda fits with their strategic plan, he said.
Though the list of potential grocery stores may be limited, the Rotunda will likely be an attractive site, Mackler said.
"It's well-positioned," he said of the Rotunda, in the 700 block of W. 40th St.. "It's in a great market in Baltimore, densely populated with good income and education."
Bell said Hekemian and Giant negotiated an agreement last week that allows the supermarket to end its long-term lease, and the developer to bring in a smaller grocer that won't compete with Giant at its new location in the Greenspring Tower Shopping Center.
Giant has purchased the Fresh & Green's store less than a half-mile away, and plans to relocate after six to eight weeks of renovation, leaving a 33,000-square-foot-vacancy at the Rotunda's front entrance.
According to terms of the agreement between Giant and Hekemian, the replacement store at the Rotunda can be no larger than 20,000 square feet, Bell said.
Landover-based Giant Food's spokesman Jamie Miller said the grocer's departure could "expedite" the redevelopment of the Rotunda.
City Councilwoman Mary Pat Clarke, whose 14th District includes the mall, said that in the next six weeks Bell wants to reconvene an advisory group of community leaders that once met regularly to give Hekemian input on the Rotunda's redevelopment.
"It sounds as if they're ready to roll" on redevelopment, Clarke said Monday. "There's no more strings tying them down."