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A Grocery Store In Gallery Place/Penn Quarter

Posted by gpliving
June 5, 2006

===== Update (9/12/2006 @ 4:00pm) =====

In the Express today!

===== Update (9/12/2006 @ 4:00pm) =====

Balducci’s Break Up With Penn Quarter Now Final

Hopefully Magruders or Trader Joes will start negotiations after Balducci’s moves out!

===== Update (9/9/2006 @ 8:00am) =====

Balducci’s officially declares that it will not open a store in the Penn Quarter.

===== Update (9/1/2006 @ 9:00am) =====

Trader Joe’s in Foggy Bottom is open! We have reports that all 9 registers are overloaded a day after its opening.

===== Update (7/13/2006 @ 4:52pm) =====

The PQ grocery store discussion is back in the Express!

===== Update (7/11/2006 @ 6:33pm) =====

The Washington Business Journal reports that Balducci’s is reconsidering their plans in Penn Quarter.

===== Update (6/30/2006) =====

A construction worker confirms that Balducci’s will once again be occuping the space.

===== Update (6/28/2006 @ 1:37pm) =====

Some activity has been reported in the Jefferson space.

===== Update (6/15/2006 @ 9:56pm) =====

Cheryl spoke with Keith Sellars today, no new news. Sue Lipinsky has been hard to get in touch with.

===== Update (6/5/2006 @ 7:03am) =====

We noticed the last comment left on the WaPo Express’ recent story about Penn Quarter’s lack of grocery stores is significant. It was written by Gary Bortnick VP-COO Magruders Grocery:

    We(Magruders Grocery) are very interested in the space on 7th Street. We have improved our ready to go foods over the last few years and we have changed our variety at our small store in Cleveland Park to address our customers needs. For instance adding fresh Gelato, which we produce at the store has been a tremendous hit. Magruders is Washington’s oldest grocer.The building at 7th St.has obstacles to overcome but their is not a grocer in the city who could provide the quality produce, meat and ready to go foods that we can sell at low prices.

First of all, we welcome Magruders to the blogsphere! I think it was really great of Gary to let us know that Magruders is interested in coming to Penn Quarter because our plight has mainly been one-sided (we ask grocers to come, and don’t hear anything back). All we can say is that we’re going to check out the Cleveland Park store next (Gelato, anyone?)!

===== Update (6/1/2006 @ 1:57pm) =====

There are unconfirmed reports that our neighborhood grocery store is on the agenda for the next Bear Stearn’s board meeting.

===== Update (6/1/2006 @ 1:53pm) =====

ReadExpress (the online version of the WaPo Express) wrote a story about Penn Quarter’s lack of grocery stores.

Read the comments – there’s an interesting one about urban grocery stores.

===== Update (5/19/2006 @ 2:37pm) =====

Link to a WashTimes article on the grocery store issue.

===== Update (5/11/2006 @ 1:32pm) =====

We have a nice update for everyone today! A representative from the Deputy Mayors’ office provided the following update on the Jefferson space:

  • Balducci’s still holds the lease; they are re-evaluating their decision; they might also sub-lease it.
  • The Deputy Mayors’ office is in talks with Eatzi’s, Magruders, NYC’s A&P Fresh Market, Food Emporium, and Fresh Fields from Philadelphia (aka Whole Foods).
  • The Deputy Mayors’ office is meeting with Trader Joe’s later this month.
  • At the Jefferson space, Balducci’s spent $5,000 for food vents for cooking and electricity & water is already in. The space is practically begging for a grocery store to move in!

    ===== Update (5/2/2006 @ 2:20pm) =====

  • GPLiving called Kerry at Trader Joe’s to ask if he’d like our blog address. He did, and said that he would pass it to the people researching our location! GPLiving also offered to post any information that TJ’s would like to send to the community. Kerry noted that since Trader Joe’s is a private company, anything short of an opening announcement would not be made public. But, we can be assured that Trader Joe’s is now following our blog!

    ===== Update (5/2/2006 @ 1:30pm) =====

  • Keith Sellars, Director of Retail Development @ Washington DC Economic Partnership, is talking to these two natural grocers about moving into the Jefferson building. Have a look at their websites and let us know what you think!

    Ellwood Thompson Natural Market
    www.ellwoodthompsons.com

    Fresh Market (Greensboro North Carolina)
    www.thefreshmarket.com

  • Trader Joe’s is interested in opening more than one DC location – this is good news for us!
  • Received another email from a resident in support of a Trader Joe’s: I just wanted to add my two cents to the conversation about which grocery store I would prefer as a GP resident. I feel that Trader Joe’s would be the best addition–it’s affordable, generally healthy and tastes good. For these reasons, and for the fact that I really wouldn’t be able to afford shopping at Balducci’s very often, makes me very excited to have TJ in the area.Right now the closest TJ is in Alexandria and it’s really small and I never really motivate to go there. I mostly shop at Whole Foods (Whole Paycheck as I like to call it) or Yes Natural Foods, but they are expensive, and TJ has impressive prices. If they opened up in the Jefferson space, it would be a big TJ, large enough to carry everything that we could possibly need!

    I think many of my friends that live around GP would also be very excited to have TJ in the neighborhood.

    Please let me know if there’s anything I can do (or encourage others to do) to prove to TJ that we’d much prefer them to Balducci’s anyway?

    ===== Update (5/2/2006 @ 11:00am) =====

  • Got a call back from James Duncan @ JPI. He informs us that Balducci’s still holds the legal lease on the space in the Jefferson. Balducci’s has only made the first step to inform JPI that they are halting their building plans. I brought up the idea of Trader Joe’s and James confirmed that Trader Joe’s had looked at the space, although it was a while ago. TJ’s said that the Jefferson space was actually larger than their normal store size.

    Edit: Also, James did not express confidence in our efforts to get Balducci’s to reverse their decision.

    More to come this afternoon!

    ===== Update (5/2/2006 @ 9:30am) =====

    I think our world just got a little smaller with today’s BIG mention in the Express’ Blog Log section. Thanks Express!

    ===== Update (5/1/2006 @ 1:30pm) =====

    General Mission: Persuade Balducci’s to reverse their decision to pull out of the Penn Quarter area location (approx. 7th and E St) in the Jefferson building. If that goes nowhere, we will ask Trader Joe’s and/or other grocers to fill the space.

    Recent Actions:

  • Left a message with James Duncan at JPI to find out if Balducci’s still holds the lease on the Jefferson space.
  • A resident contacted Trader Joe’s Customer Relations: Phoned Customer Relations at Trader Joe’s; spoke with Kerry (guy) 626 599 3700 who will pass along the information about Balducci’s pull-out. I said that i passed the L Street site and it is very doubtful if the site would be available to them in July. Kerry will contact their Real Estate staff. I asked him about a phone in or email campaign he said that that would not be persuasive, the real estate team would evaluate the location.
  • A sample letter to request that Balducci’s reverse their decision. This letter & contact info was passed along to all Penn Quarter area buildings recently. If you live, work, or play in the PQ area, please send this letter to the three addresses below.

    John Howard at Bear Stearns Merchant Bank at JDHoward@Bear.com
    David King at Bear Stearns Merchant Bank at David.King@bear.com
    Peter Krieger at Balducci’s at PKrieger@balduccis.com

    Also, please BCC Jo-Ann ( jo-ann.neuhaus@ncpc.gov) so she can get a rough estimate of the level of response.


      [Personalize or adapt it and email it to Balducci’s and Bear Stearns]

      I was devastated when I heard that Balducci’s and Bear Stearns were abandoning their planned store on 7th Street, NW in Washington, DC’s booming Penn Quarter neighborhood. As a [choose from the following: resident, office tenant, one who works in Penn Quarter, one who works nearby, someone who does x here regularly – you get the picture], I was truly looking forward to shopping often at Balducci’s.

      The fact that Penn Quarter residents and those who work or come here regularly are losing a grocery store is bad enough, but our loss of a Balducci’s is even more distressing because, as you know, Balducci’s is no ordinary grocery store. Its fresh produce, meats, and fish often include selections that no other grocer carries, it has a great selection of prepared foods, and there are lots of gourmet items to choose from. And, by the way, for years to come, you would have been the only grocery store within walking distance for thousands of us, and the only high end grocer for the next decade from the plans that have been made public!

      Although I do not know how you reached the conclusion that this was not a good addition to your portfolio, knowing Penn Quarter and the neighborhoods nearby, I am confident that your guys botched up on their due diligence. Come down here sometime and take a look; you will likely be surprised. Penn Quarter offers a unique investment opportunity for a high-end grocer with a great selection of prepared foods and a catering arm. It is centrally located in the newly revitalized downtown, consumers include residents in thousands of new condos and apartments (more of which are being constructed) whose average incomes are upwards of $150,000 per unit. Added to this mix are tens of thousands of daytime office tenants, many of whom need to buy something and eat while they work at their desks; others want to shop here for both prepared food and food to cook before heading home. And with the Convention Center to the north, museums, shops, and numerous theaters right here, and the Mall to the south, we are a tourist mecca – tourists need to eat too! The media has said we are hot and we are cool! We attract people from throughout the metro area, including many from the nearby neighborhoods who now have no similar grocer to go to.

      Many of us would be glad to meet with you to help you reconsider your decision. You still have a great lease and a great opportunity, and you will get oodles of free publicity as others here have! Don’t kick yourselves in a year or two from now for making the wrong decision; recognize that you didn’t have all the fact, get back on course now, and move forward with Balducci’s in Penn Quarter!

      I will shop at Balducci’s if you are here; won’t you change your mind – again, and come back to Penn Quarter on 7th Street!

      Sincerely,
      Name
      [add residential building or business and office location or actual address]

    =========================
    GPLiving would like to take an opportunity to discuss the grocery store situation in Gallery Place/Penn Quarter.

    We all have heard that Balducci’s pulled out of the 7th & E St location. (WaPo article)

    We’ve tossed around ideas of wooing other grocers to the site: Whole Foods, Harris Teeter, Trader Joe’s, Safeway, Giant, and Magruders.

    According to the WaPo, the space under the Clara Barton/Lafayette (aka Jefferson) building is 21,000 sq. ft. A normal grocery store occupies around 45,000 sq. ft. of space. For reference, the Whole Foods in Logan Circle is 37,000 sq. ft. Just looking at the space situation will narrow down the options for possible grocers. We can be sure that Safeway, Giant, Harris Teeter, and Whole Foods would not be interested in the site unless they created a new concept store that delivers us the minimum grocery options.

    It is our opinion that Trader Joe’s would be the most suited for this space. Balducci’s may be a nice grocer, but it is very expensive and most of us desire reasonably priced groceries that are within walking distance of our buildings. Also, Balducci’s abrupt pull-out started rumours that their financial situation is in question. In addition, Balducci’s lost their CEO, Mark Ordan, in February.

    Lately, we’ve seen a small effort to woo Balducci’s back to the Clara Barton/Lafayette space. To that campaign, we respond as such: We deserve better than Balducci’s! Balducci’s was shortsighted to pass up on the retail space which, as the only grocer in the neighborhood, was guaranteed to be successful. We are now presented with an excellent opportunity to select (through community efforts) which grocer we want in our neighborhood. Trader Joe’s is an expert with lower square footage spaces and has a track record of reasonable prices and quality groceries.

    GPLiving will be contacting Trader Joe’s to discuss the situation. We’d love to hear your thoughts to this article. We’ve also added a big link at the top of the blog to keep discussion accessible.

  • Related posts:

    1. Where Did Balducci’s Go?
    2. Gallery Place Building Permit Update
    3. West Elm To Take Up Shop in Gallery Place/Penn Quarter
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    Comments
    Comment by Anonymous on June 28, 2006 @ 11:00 am

    Any updates on the grocery store?

    Comment by Anonymous on June 28, 2006 @ 11:05 am

    Any new news on the grocery store? I saw a small truck unloading items into the space this morning. Not sure if it means anything though.

    Comment by gpliving on June 28, 2006 @ 12:50 pm

    Just updated the post..

    Comment by clara barton dweller on July 5, 2006 @ 1:59 pm

    FYI, people are posting apartment listings in the Lafayette saying that Balducci’s is coming – or is even IN the building already! Look at this ad from today’s Craigslist:

    $2100 / 1br – The Lafayette top floor corner unit w/ great views 1br/1ba.

    Reply to: hous-178622514@craigslist.org
    Date: 2006-07-05, 1:57PM EDT

    1br / 1ba 12th floor corner unit in the Lafayette Condo Building. Unbeatable location. Choice of DC’s top nightlife attractions right outside the front door of the building. Balducci’s Grocery Store on lower level of the building. The list goes on and on…….. Avail. 9/1/06 gas included. All other utilities to be paid by tenant. No smoking and No pets.

    I have seen several ads saying Balducci’s is coming, but this one is the worst – saying it’s already there. This is really dishonest. Of course, I wish it WERE true! Maybe it will be.

    Comment by Anonymous on July 11, 2006 @ 7:23 am

    From Reliable Sources (WP) Chef Morou has some sort of contract to do in-store demonstrations with Balduccis. I know they have MD locations…but he used to work at Signatures in Penn Quarter.

    Ouattara returned to Washington for the birth of his second daughter and a deal with Balducci’s to do in-store demonstrations and create dishes for the market. He also bought his first restaurant: He’s taking over the former Blue Point Grill on Franklin Street in Old Town Alexandria and renaming it Farrah Olivia by Morou, after his 2-year-old daughter. The new menu? “I always say I cook like I speak — American with an accent.” The 60-seat restaurant is slated to open in September with Baker as pastry chef (Marine is now the head chef at Red Sage) and Ouattara’s wife, Heather , as general manager.

    Comment by Anonymous on August 22, 2006 @ 10:41 am

    A month and a half into Balducci’s supposed 2 month reconsideration are there any updates. I walk by the space every day and haven’t seen anyone…not a single soul, in that space. No boxes moved, nothing changed. Anyone have any insight?

    Comment by Anonymous on September 2, 2006 @ 5:01 pm

    ANY NEWS ON BALDUCCIS’S? I went to the New Trader Joes today (over between foggy bottom and G-town) and it was packed. In fact even with about 9 registers there was still a long line to checkout. Place seemed to be a bit smaller than Balducci’s supposed location. I say we try and get Trader’s to Penn Quarter.

    Comment by gpliving on September 3, 2006 @ 8:38 am

    We’ve heard that Balducci’s will make their decision mid-Sept to mid-Oct.

    We think that a lot of interested grocers are just waiting Balducci’s out until the end of the year when they will be forced to give up the lease. (i.e. no one wants to sub-lease from them because it makes no sense)

    There are also rumors of residents planning to start a co-op grocery store if no one moves into the space by early next year.

    Comment by Anonymous on September 8, 2006 @ 1:59 pm

    Passing along sth found in my condo’s website…”regrettably Balducci’s decided to not open a store in Penn Quarter. Because the city already has a financial interest in having a grocery store at this location, I am confident this city administration will make every effort to help the developer, Balducci’s, who has a lease, and their brokers find another grocery store for this location.”

    Comment by Anonymous on October 3, 2006 @ 12:22 pm

    FWIW – Trader Joe’s has updated their website, and now has a store request form that you can fill out online.

    Comment by Anonymous on November 18, 2006 @ 7:17 pm

    HNTB, the architecture firm, on 7th b/w D and E is leaving Penn Quarter. Their office space happens to be right next to the proposed grocery store space. Perhaps the two spaces could merge to create a larger space for a grocery store or another retail could go in there…..

    Sorry, the comment form is closed at this time.

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