Developers dive into downtown Carlisle

The old Seras Cleaners building in Carlisle, developed by Caprice Properties partners Stephen Capone, right, and Christopher Rice, is set to house a new restaurant by Mark Bricker, former owner of the Ship Wreck Pub & Inn in Shippensburg. The bar area features a wall of windows that overlook an outdoor dining area. - (Photo / Amy Spangler)

Development partners Stephen Capone and Christopher Rice of Caprice Properties are willing to wait for the right partner.

In fact, the old Seras Cleaners building in Carlisle sat vacant for more than three years before the commercial space was filled. Restaurateur Mark Bricker plans to open Brick, offering American cuisine in an upscale setting, in the building at 113 W. High St.

Bricker is the fourth business owner to join Caprice Properties in a downtown Carlisle redevelopment venture. All total, the Capone/Rice partnership owns 10 apartment buildings, five of which have commercial frontage.

Many developers treat downtowns with disdain. Older buildings, lack of parking and bureaucratic red tape leave developers eager to flee to the open-space promise of the suburbs.

So just call Capone and Rice the bizarro developers. Both men are in their mid-30s and relocated to Carlisle (Rice in 2001; Capone in 2006) for their respective careers. Rice is a lawyer with the borough firm of Martson Law Offices, while Capone is chief financial officer for Renn Kirby Mitsubishi, a car dealership group based in Maryland.

Both say they are developing the downtown because they love old buildings and college downtowns. Rice is a 2001 graduate of Penn State Dickinson School of Law.

“We saw it as a college downtown moving back to concentrated living areas,” Capone explained. “You've already got that infrastructure here. Why not take that and add onto it rather than starting from scratch?”

Ben Laudermilch, executive director of the Cumberland County Housing and Redevelopment Authorities, said Carlisle is trending in the right direction in its bid to be a destination downtown. Rents are actually higher in suburban areas, he noted.

“We couldn't do it without folks like Steve and Chris, who are really philanthropic,” he said. “I'm sure they could be doing things in other areas and making a greater profit.”

Saw success

Capone and Rice deflect talk of making a risky investment in downtown Carlisle, noting that others showed the way by having success with the ground-floor commercial/upstairs luxury apartments model.

In 2003, developer Kenn Tuckey turned the fire-damaged Centenary building at 46-56 W. High St. into pricier apartments that rented well. That was followed by several other projects in a similar vein.

Capone grew up in Frederick, Md., and said it wasn't long after moving to Carlisle that he got the itch to re-create the downtown success of his hometown. When he needed an attorney to handle his first deal, he turned to Rice. The two became fast friends. They went into business together in 2010.

“Everything needs to be modernized a little bit,” Capone said. “We're just taking the best qualities of these old buildings and adding a little something to them.”

Rice said the colleges — the law school and Dickinson College — are a key component of the downtown atmosphere. Borough leaders are aiding downtown growth via decisions such as the road diet, he added. The controversial “traffic calming” plan reduced borough traffic from four lanes to two, creating bike paths and more room for on-street parking.

While they own properties on West Louther Street as well, Caprice is primarily focused on the 100 block of West High Street. The developers recently completed a deal to buy the 121 W. High St. building that is home to George's Pizza. Pizzeria owner Pete Merisotis will lease the space back from Caprice and remain open.

Restaurants key

Studies show an eclectic mix of nice dining options attract people downtown, Rice said. The restaurants are usually followed by retail and other commercial development. In October, Carlisle businessman Ross Morris opened his fifth eatery — Taqueria Laurita — at 150 W. High St., another Caprice project.

Bricker said he considers the developers his “partners” in his restaurant. While all involved decline to cite dollar amounts, Bricker and Caprice each contributed “about half” to the renovation of 113 W. High St., Bricker said.

Rice and Capone added that all of the revenue they gain from their buildings is poured back into renovations and upkeep.

For Bricker, who owned his last restaurant, The Ship Wreck Pub & Inn in Shippensburg, the idea of renting gave him “mixed emotions” at first. But the building — with a 40-foot ceiling and wall of windows in what will be the bar area — helped him get past it.

“I had heard that it wouldn't work for a restaurant,” Bricker said. “I walked in and it took my breath away. I called (Caprice) right away.”

Bricker, who hopes to open in April, said he wants to offer people a reason to come downtown. He is purchasing a liquor license from Caprice, a license that previously belonged to the Sunnyside Restaurant's owners.

“I would say it has the feel of a bigger-city restaurant the way it's set up,” Bricker said. “It has outdoor seating for 75 people, which Carlisle doesn't really have.”

Capone and Rice say they hope others copy their formula.

“We can't do this by ourselves,” Capone said. “There's a lot of buildings here.” 

The art of the deal

The Cumberland County Housing and Redevelopment Authorities assisted developers Stephen Capone and Christopher Rice on deals to purchase the 113-117 W. High St. buildings, which include two ground-floor businesses: the clothing store, Miss Ruth’s Time Bomb and a soon-to-open restaurant, Brick.

The $1.16 million deal broke down this way:

$585,109: private lender

$105,000: Borough of Carlisle CDBG and CDBG-R (American Reinvestment and Recovery Act) funding

$248,000: state Department of Community and Economic Development (to the redevelopment authority to lend; this money revolves back to the authority for lending to finance additional projects)

$30,000: redevelopment authority

$12,000: Borough of Carlisle facade grant program

$178,388: owner cash

Source: Central Penn Business Journal