Hampden Grocery Store Shuffle, Part 2: The Sinking Rotunda

(this will never happen)

Last week the Shank reported on The Giant's purchase of the Fresh & Green's (the former Superfresh) on 41st St. and the store's plan to leave its long held spot at The Rotunda - a beautiful but sorely out-dated office/mall complex (once owned by the Mencken family) a couple blocks up on 41st St.

It's been almost 10 years now since Hekemian bought the Rotunda and promised the neighborhood a new development including a controversial 22-story high rise and big box corporate retail.

(a view of the previously proposed Rotunda redevelopment)

At the time, the developers said that they were looking to give Hampden a main street with their new Rotunda, even though Hampden already has a main street, 36th St. AKA The Avenue.

When the residential and business community began to express concerns about the scope of the development, Hekemian warned that theirs was the retail of the future.

Here we are, 8 years into the future, and how does that retail look? The Baltimore Messenger has a pretty interesting view.

Even the positive spin the developers are putting on the loss of an anchor like Giant seems half-hearted and seems unrealistic compared to the more sober views of their remaining current tenants.

Chris Bell, Hekemian's development VP floated grocery buzz name "Trader Joe's" as  a potential replacement for Giant. It's a possible "best-case-scenario" for many residents who the Shank has spoken to regarding this issue.

However, Trader Joe's has been approached several times in the past by representatives of Hampden's business community, at the request of businesses and residents, about moving into the neighborhood, and each time the market patiently explained that such a location does not fit into their business model. It's possible that they may change or adapt their business model to take advantage of the Rotunda location, but it doesn't seem likely.

The mention of a supposed "boutique" grocer replacing the Giant sounds hopeful. Possibly a Fresh Market. Or a MOM's Organic Market. Or a Whole Foods (not one of my favorites). But that depends on whether or not the vacating Giant would see these markets as a competitive threat.

But this quote from Hekemian should raise eyebrows:
"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."

Even though Giant has left its lease and the Rotunda, it has still managed to block any kind of competitive grocery store from opening in its old location.

A boutique market will, most likely, be unable to service all the needs of local college students who were regularly shuttled to the Rotunda Giant, nor will it likely be able to meet all the needs of the neighboring senior communities that depend on a full-service market with convenient access the the one Giant used to provide.

Hampden, once fortunate to have 2 full-service grocery stores (both of which were highly profitable) has, through the corporate failure of Superfresh, Fresh & Green's and now because of Giant's non-competitive clause, has lost one of those markets and it won't return.

Unless the Rotunda's owners act quickly (something they've been unable to do at this point), without an anchor like Giant, the mall will most likely continue to bleed tenants and customers.

But getting new tenants can be a bit tricky for a project in the situation the Rotunda is in.

A massive development project is promised. So what kind of lease could a business sign? What kind of stability is offered? So how long would a business be able to exist there before the looming development happens? And then, what happens to the businesses in the Rotunda once the redevelopment begins? And what happens to their customers who have to enter a construction zone just to shop? And finally, after the redevelopment is complete, will businesses be able to afford the increased rents that redevelopment guarantees? Will all of the tenants still be offered leases?

For the longest time, the Rotunda was simply stalled. But now, with the loss of the Giant, it seems it could be in quicksand unless developers come up with a plan and, most importantly, act on that plan.

Will the Grand Rotunda rise again? Time will tell.

Comments

[Rusty Chompers]

That's why Remington needs a Wal-Mart! Fuck Hampden hipsters.

Sorry - some moron was bound to say it, so I thought it may as well be me.

[Becky]

The NYT ran an interesting article earlier this week about what the future of retail malls might look like:

http://www.nytimes.com/2012/02/06/business/making-over-the-mall-in-rough-economic-times.html?_r=1&pagewanted=all

The neighborhood HAS been lobbying for a dog park...

[Adam Meister]

This is one of my favorite posts of all time on this blog. You should post it on the BmoreLocal Facebook group. It will generate discussion.

One of the larger lessons we can learn from the Rotunda saga is that just because a developer says it is going to happen and provides awesome pictures does not mean it will happen in the next decade. By the time the next decade comes along and nothing has happened most of the people who were involved originally have moved on and the new developer has new people (suckers) to deal with. The Rotunda, Westside/Superblock, and Reservoir Hill Whitelock/Lakeview developments all follow this pattern.

[jfruh]

Out of curiosity, what specifically about Hampden did TJs say didn't meet their business model? I know box retailers are often nuts about parking -- usually they want much more than people living in cities generally want to give up (see for instance the Giant in Waverly and what a struggle that was). I wonder if Trader Joes didn't like any of the other sites in Hampden because they'd never be able to put in the parking lot they'd want, but might consider the Rotunda, which has tons of parking already in place.

[Benn]

jfruh - According to Trader Joe's the last time I spoke to them:
1. They don't move into new retail development.
2. They don't move into newly renovated/redeveloped retail.
3. They don't move into retail that is planning to redevelop.
4. They don't move into cities.

I realize they have somewhat revised #4. Items #1-3 are one way in which they keep overhead down.

As a result, this would rule out developments like Remington's proposed 25th St. Station (because it's a new development - plus the developers wanted a Wal-Mart there, not a TJs) and it would rule out the Rotunda (because it plans to redevelop).

The Fresh & Green's/Superfresh space that Giant took may have been more appealing to TJs - but it was more square footage than Trader Joe's usually handles, so I doubt they would have gone there either.

It's entirely possible that they could change or modify their location model, but I spoke to the company 3 times about trying to bring them into North Baltimore over the past few years, and each time I was told the same thing.

[Adam Meister]

So if the Rotunda developer just admits that there is not going to be a redevelopment anytime soon then Trader Joe's will consider it? The threat of redevelopment is keeping a Trader Joe's out of Hampden? This is another negative of developers talking a big game and then never delivering anything.

[A Facebook User]

Trader Joe's is awesome but also full of shit. They are all over LA. They can "pretend" that they don't move into "cities" but LA is one big city and they are the local grocer to many neighborhoods. Also, they do move into redeveloped areas, they just talk about it.

Personally, I'd love to see an Aldi store at the Rotunda. They are a higher-end version of Sav-A-Lot. They are NOT too expensive and are senior-friendly (for those of us who care about all those seniors who live within a block or two of the Rotunda). They have the best bacon on the planet (thick sliced, peppered or plain). Plus, they offer interesting seasonal items (including electronics). Go Aldis!!!

[Deb]

What does TJ's call their Towson location? Used to be Hutzlers - that building is not redeveloped?

[Benn]

Trader Joe's is owned by Aldis.

I wouldn't call where the Towson Trader Joe's is Redeveloped. It is repurposed. Redeveloped is what they are looking to do to the Rotunda. Repurposed is when you can still tell it's an old K-Mart.

[kara]

my dream is actually for an H-Mart in the city so that the colleges can stop wasting buses taking kids out there but that will never happen either.