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High-end boutiques bloom inHarbor East, Towson

page 12A

Extravagance on the EasternShore for Md.’s retirees

page 13A February 2009

A SUPPLEMENT TO

LuxuryLIVING

LuxuryLuxuryLIVINGLIVING

12A T H E D A I L Y R E C O R D F E B R U A R Y 2 0 0 9

Focus SectionLuxury Living

BY KAREN NITKIN

Special to The Daily Record

n 2006, George Sakellaristook a calculated business

risk, moving his high-end re-tail shop, Handbags in the

City, from a 500-square-foot spaceon South Exeter Street to 1,100 squarefeet in the ritzy new Harbor East devel-opment a short distance away.

At the time, the move seemed to makeperfect sense. His clients, mostly doctors,lawyers and other high-income profes-sionals, had no problem spending fourfigures on a handbag and might even buymore than one at a time. In the new loca-tion, he even had room to expand his in-ventory, offering clothing and shoes fromthe likes of Jill Stuart and Just Cavallialongside bags from Kooba and Mulberry.

But since then, as everyone knows,the economy has fallen off a cliff. Unem-ployment is going up and retirement sav-ings are going down. These days, con-sumers seem more in the mood to keeptheir pocketbooks tightly shuttered than tospend $500 or more for a new one.

Sakellaris says he’s adjusted to thechange in the retail landscape by stockinga broader mix of items. His bags nowstart around $195, instead of $395, hesays. “We still carry the luxury brands,but we buy some of the bridge levels ofeach brand,” he explains.

He has gotten used to customers buy-ing a single bag instead of two or moreand he’s marking items down sooner thanin the past.

But Sakellaris believes his businesswill survive this rough patch. “We justkind of roll with the punches,” he says. Infact, he admits, he would make the moveto Harbor East again, knowing what heknows now. “I think it will be OK,” saysSakellaris.

Throughout Maryland, the UnitedStates and even around the world, retail-ers are doing their best to stay afloat dur-

ing a global economic crisis that is sap-ping consumer confidence and decimatingfamily budgets.

“Things are very difficult out there,”says Tom Saquella, president of the Mary-land Retailers Association. “I thinkwhere retailers can pull back on expan-sions or new locations, they’re going to dothat right now.”

Because of an ongoing credit freeze,business owners frequently have diffi-culty securing financing for expansions.And planning is difficult because nobodyknows when economic conditions willimprove, Saquella notes.

On the plus side, some business own-ers might find new opportunities and lo-cations as competitors go out of busi-ness, he says.

He would like the state to enact taxholidays to bring people to stores but rec-ognizes that probably won’t happen whenstate coffers are short of cash. His nexthope is that state officials will at least notimpose new regulations or costs that willburden already vulnerable businesses.

Sakellaris says he’s eager to see whatspring brings, since that is typically whentourists come to town and business picksup for him. “I don’t think we’ll be affectedthat much,” he continues. He notes thatmost of his clients have job security andcan afford the items in the store, but theyhave been holding back because they feelrattled.

Saquella believes success stories canalways be found, but they are the excep-tions rather than the rule. “Right now, Iwould say all the sectors are feeling it,” hesays. The one business that’s doing rela-tively well, he continues, is the food in-dustry, because people are eating out less.But even their numbers “aren’t blowingpeople away.”

Companies, particularly high-endones, are responding to the changing con-ditions with deeper discounts and newsales campaigns.

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CONTINUED ON PAGE 14A

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Focus SectionLuxury Living

T H E D A I L Y R E C O R D 13AF E B R U A R Y 2 0 0 9

BY MARY MEDLAND

Special to The Daily Record

hile the Eastern Shore is full oflow-key, low-cost alternatives to Mary-

land’s more affluent communities, it still hasits fair share of luxury, especially on the water. “The No. 1 reason people come to Talbot Coun-

ty is for the water,” says Debbie Dodson, tourism direc-tor for the county. “In St. Michaels, one can kayak, canoeor sail. But we also have great restaurants, festivals andlecture series.”

Donna Abbott, public relations director for OceanCity, agrees.

“I think what appeals to those who come here to va-cation also appeals to the people who live here yearround. Things are more relaxed and people can slowdown and enjoy the beach, fishing or golfing. Many peo-ple have had places as investment properties or secondhomes here that they know will be waiting for themwhen it comes time to retire.”

Communities like Martingham, in St. Michaels, pro-vide such homes at a price tag of $300,000 to more than$1 million. Amenities include its proximity to Harbour-town Golf Resort and Conference Center.

“Martingham homeowners can become members ofthe clubhouse and take advantage of its 18-hole golfcourse,” explains Dobson.

“In addition, there are a lot of waterfront propertieson the Miles River, and these homes sell for millions ofdollars.”

For those just coming for a short visit, there are lux-ury lodgings. “We have the Inn at Perry Cabin, whichis rated one of the Top 100 Best Hotels in the UnitedStates by Travel & Leisure magazine,” says Dodson.

But it is not only retirees who are making the move tothe Eastern Shore. “People who work in Washington,D.C., but do not have to be there all five days of theweek are moving here. If you time things carefully, youcan drive to D.C. in about one hour and 15 minutes,”notes Dodson. “And some of our CEOs are flown totheir jobs in corporate jets.”

“With telecommuting, people can live here perma-nently and work in other areas,” agrees Abbott.

Indeed, the Eastern Shore is geographically verywell-positioned, with proximity to Baltimore, Washington,D.C., Philadelphia and even New York.

“People move to Easton from New York, because itreminds them of what Oyster Bay and the Hamptons

used to be like,” says Dodson. “They can sell their homesin those areas for a really good price and buy some-thing here that is comparable, but with much lower tax-es.”

Other Easton amenities include top-flight restau-rants, such as Out of the Fire, Scossa, MasonsGourmet and the Inn at 202 Dover, as well as a re-spected art museum, private galleries and the AvalonTheatre. “We are known as a very art-friendly commu-nity with a number of highly regarded private galleries,”notes Dodson. “And on the first Friday of the month thegalleries stay open with the artists present to meet andgreet visitors and potential collectors.”

For those who prefer the quiet of bayside living,there is Rivendell Condominiums — three- and four-bedroom luxury residences between 80th and 81ststreets. Among such offerings as an upscale lobby, fitnesscenter, and both indoor and outdoor pools, the developeris offering some enticing breaks, including no closingcosts and new seller financing on 10 units for a limitedtime.

One Rivendell unitboasts three bed-rooms and three-and-one-half bathrooms.The balcony alonemeasures 328 squarefeet and the residence2,041 square feet,coming to a total of2,369 square feet ofliving space.

Other amenitiesinclude bay and oceanviews, controlled access parking, a new restaurant andthree elevators. In the kitchen, homeowners will findstainless steel appliances, sophisticated cabinetry andgranite countertops.

Homeowners can opt for two, three or four bed-rooms and all units come with nine-foot ceilings, a largebalcony, natural stone and ceramic tile flooring, carpet-ed bedrooms and crown molding in the living, diningand bedrooms. The master bath includes double vanities,a jetted tub and a separate, glass-enclosed shower withMoen fixtures. Residents enjoy a remote-controlled fire-place, laundry room, 80-gallon quick-recovery hot-waterheater, and cable and high-speed Internet service aswell as programmable thermostats and eight-foot An-dersen sliding doors and windows.

Ocean City is also home to a new oceanfront prop-erty, the Gateway Grand. “We opened in July 2008 with196 units on 16 floors,” says Marie L. Karl, senior vicepresident of Trammell Crow Company. “This is a veryhigh-quality property, and all units have three or four bed-rooms.”

Karl notes that the 32,000-square-foot, two-story lob-by and amenity space includes lounges, a cateringkitchen, bar, indoor pool, high-end fitness center and achildren’s space. The Gateway Grand uses a key-fob en-try system, and there is on-site property management andmaintenance personnel, as well as five elevators.

Perhaps the best amenity offered by the GatewayGrand is its “Call on Jack” concierge service, which pro-vides move-in assistance, dogwalking and housekeepingservices, and even dinner reservations.

All Gateway units include stainless steel kitchen ap-pliances, granite countertops and marble master bath-room floors. Residents have access to a six-story garageand climate-controlled corridors.

“These are all mar-ket rate units,” notesKarl. “On April 5, we aregoing to announce a pro-motional pricing for 20units. A lot of peoplewho have been comingto Ocean City for yearsare now upgrading tothis newer, larger devel-opment.

“The developmentalso will include an ad-jacent free-standing

restaurant at 48th Street and Coastal Highway.”Perhaps, above all, the greatest appeal of the Eastern

Shore is its reputation for friendliness among residents.Leroy and Louri Dixon, Gateway Grand homeowners,note, “In today’s hectic world it is indeed a pleasurewhen the staff stops what they are doing to offer a help-ing hand or just say hello.”

It is a sentiment that Mary Rice — a Gateway Grandconcierge — hears frequently. “Everyone commentsabout the different atmosphere they see after they comeacross the Bay Bridge,” she says. “People comment onhow friendly people are in Ocean City and elsewhere onthe Eastern Shore.

“They really notice how hospitable people are andhow relaxing it is to live here.”

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Many people have had places as investment properties or second homes here that they know will be waiting for

them when it comes time to retire.

Donna AbbottOcean City Department of Tourism

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Patrick Sutton Homes, for example,is seeing a boost in its design consulta-tion services, though retail sales have gonedown. Manager Stacy Connelly says cus-tomers are less likely to indulge in the im-pulse purchases that were commonplacein the past, but they don’t mind paying forthe consultation service, which costs $100a room, because it allows them to spaceout purchases over the course of severalyears, confident that the end result willbe a unified look. And the fee is creditedback if customers spend more than $1,000at the store, she explains.

“I think it’s now about staying in yourhome and not selling, since the market’s sobad,” she says. The company has always of-fered the service, but now it is sending outpostcards promoting it.

Patrick Sutton Homes, which opened inFederal Hill in 2001, has never been a dis-count furniture store, and it doesn’t pre-tend to be one now, Connelly admits. Butthe inventory mix has changed in responseto the changing times. Now, the sofa ondisplay will still be from a top company,but maybe it will be the less-expensiveversion, without mohair. Connelly alsonotes that customers are bolder about ask-ing for discounts.

South Moon Under, a clothing storewith locations in Harbor East, Towsonand Bethesda, among others, is one of thefew companies that is physically expand-ing. The local chain added a 12th locationin Washington, D.C., on Jan. 30.

But the company is not ignoring eco-nomic realities. “We will continue to openup stores, but our deal requirements havechanged,” says Michelle Pipitone, mar-keting assistant. The company has alsoadded more moderately priced items toits mix. “We have changed our balance toaccommodate more moderate price pointssince last fall,” she says.

A retailer like Ukazoo Books in Tow-son, which buys and sells used books,seems poised to actually benefit from thedownturn. Manager Olivia Tejeda says it’shard to know what role the economy hasplayed in the company’s expanding fol-lowing, since the store has only been opensince June 2007.

She notes that the discounted bookssold by Ukazoo are in good condition andthat customers can generate a little cash byselling their own books. “We’re definitelyhaving more people mention that it’s agreat value,” she says.

She also noted that books about findingnew jobs, saving money and starting overare selling especially well. The store cre-ated a display of books on those themesaround the start of the new year, she says.“We have to replenish it every day.”

14A T H E D A I L Y R E C O R D F E B R U A R Y 2 0 0 9

Focus SectionLuxury Living

CONTINUED FROM PAGE 12A

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Things are very difficult out there. I

think where retailerscan pull back on

expansions or relocations, they’re

going to do thatright now.

Tom SaquellaMaryland Retailers Association

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