Beloved Eastport restaurant loses lease, downtown Annapolis building goes up for sale

Two Annapolis restaurants with more than 60 years of combined history are in flux.

O’Learys Seafood in Eastport is closing after Aug. 2, the restaurant said on its Facebook page. And the building that houses Tsu, formerly Tsunami, on West Street is for sale, as is the restaurant.

O’Learys opened in 1983 and is closing because the business lost its lease, owner Wil Peterson wrote online.

“This was not my decision, and it is not the ending I ever imagined or hoped for,” he wrote.

Peterson could not immediately be reached for comment Wednesday.

The restaurant’s final day of service is scheduled for Aug. 2, and Peterson said it would host a staff appreciation night before that “where all proceeds will go directly to our staff.” A date has not been publicized.

The Facebook post triggered hundreds of comments and reactions, with people writing that they were heartbroken and sharing memories of first dates and engagements.

What’s new with Tsu?

A property in the heart of Annapolis’ arts district, 51 West, was listed for sale by Hyatt Commercial earlier this week. The four-story building has five units and is home to Tsu, which first opened in 1999 as Tsunami.

The restaurant and its building are owned by former Annapolis Mayor Gavin Buckley and his business partners. Buckley is now running to represent District 6 on the Anne Arundel County Council, which includes Annapolis.

The listing suggests a buyer could purchase the building and Tsu as a business, buy the building and replace Tsu with a new concept, or buy the building and continue leasing space to Tsu. It also suggests selling off the units as condominiums or converting the building to another use, such as a hotel or apartments.

Buckley said his ideal outcome would be selling the building and using the proceeds to reinvest in Tsu and other restaurants in which he has a financial stake.

“We have to look at everything. You have to be open to everything,” Buckley said. “But it’s kind of our baby.”

Tsu will remain open during the sale process, Buckley said.

But the restaurant business is difficult, the former mayor said, so he and his partners need the sale to fund “some reinvestment.” If the purchase ends up causing Tsu to close at 51 West, Buckley said he and his partners will consider opening a smaller version of it (or another restaurant) at a development they’re working on at 161 West St.

The asking price for 51 West St. is between $3.5 million and $4 million, Buckley said.

Cecil Cummins, an executive vice president for Hyatt Commercial, said the building is a great investment for the right buyer.

“There’s a lot of paths forward for somebody,” Cummins said.

It’s been a tumultuous year for the restaurant business in Annapolis. Fights over outdoor dining have led to a patchwork of rules that restaurants must follow, and some longtime staples, including Ruth’s Chris Steak House, have relocated out of the city.

The biggest downtown dining drama, though, revolves around Atlas Restaurant Group’s expansion in Annapolis. Atlas, which began in Baltimore and has since grown to more than 50 properties, recently opened two restaurants at the Waterfront Hotel.

The restaurants, Armada and Marmo, are a cantina and an Italian chophouse. They brought the company’s total footprint in the state capital to five restaurants, four of which are on the water.

Earlier this year, Atlas acquired a majority stake in the Boatyard, a popular Eastport restaurant. That sale set off a firestorm in Annapolis, even though the restaurant’s longtime owner, Dick Franyo, plans to stay involved in the business.

Some commenters on social media have expressed worry — or suspicion — that Atlas is behind O’Learys losing its lease, or that it will immediately purchase 51 West.

But according to the restaurant group, neither is the case.

“Atlas is neither interested nor pursuing any of these properties,” Atlas spokesperson Erin Black said.