Minding Midtown
Penny Lane Properties Focuses Revitalization Efforts on Fort Avenue
By: Emily Mook / Photos Courtesy: Daryl Calfee / Photo Above: Palmera House Photo by Ashlee Glen
Daryl Calfee holds—and has historically held—an impressive number of professional titles, but his self-appointed moniker “Big Believer in Lynchburg” may very well be his most prominent, enduring, and inspiring designation.
You do not need to converse with Calfee for long to become aware of his steadfast passion for and action-backed investment in the Lynchburg community, but you will undoubtedly want to keep the conversation going to see what he has planned next in his ongoing efforts to improve and enrich life in the Hill City.
As the owner of Penny Lane Properties, a Class A Commercial and Residential Construction and Development firm that he (along with his first wife, Johanna, who passed away in 2023 after a courageous battle with cancer) established in 2009, Calfee has spearheaded adaptive reuse projects that now house some of Lynchburg’s most beloved commercial spaces: Casa Nueva Events, Palmera House, Taco Jesús, Golf Park Coffee Co., Farm Basket, Bentley’s on Bedford, Mission Thrift on Bedford Avenue, Marsh Roots Seafood Company, Truss Restaurant, Scratch Pasta Co., Bacon St. Bagels, Teachable Moments Preschool, Benaiah Prints Co., and Super Rad Arcade Bar, among others.
Over time, Calfee and the Penny Lane team—which currently includes COO John Rerick, Jesús Ochoa on project management, Brittany Sydnor on interior design, Brandon Sydnor on budget and finance, and Billy Hansen on commercial real estate—have shifted from an initial focus on rebuilding and restoring residential properties to a focus on commercial projects that more directly impact the community as a whole.
“We started out mostly doing residential flips, and that moved into commercial spaces,” Calfee remarked. “Our first project was a commercial space downtown in 2009, but after that, we couldn’t find anything else downtown, so we ended up doing a couple of residential projects next. Then, we moved on from those back into commercial because I wanted to hold on to everything that we did. I know that fixing and flipping are cool and show-worthy, but for long-term redevelopment and the betterment of our city, I wanted to do bigger projects that we could hold on to.”
When it comes to choosing commercial projects, Penny Lane seeks out spaces that have storied pasts and the potential to tell new—and often very different—stories in the future.
“We love doing the projects that nobody else wants to do,” noted Calfee. “When things have character, patina, and age to them, they create a different nature in your community than new construction does—not that there’s anything wrong with building new construction commercial, because we all need that for development—but old buildings just have so much character of their own, and we love bringing that back to life.”
As indicated by the aforementioned list of the firm’s commercial projects, Penny Lane has effectively breathed new life into Bedford Avenue. Having gained valuable insights from that work, the firm is now focusing its revitalization efforts on a bustling but largely underutilized area in Lynchburg: Fort Avenue.
“Fort Avenue was an untapped space,” Calfee said. “You’ve got a high traffic count and a key location in the middle of the city, but the truth is that it’s been underutilized and forgotten for so long. I had the opportunity to buy five buildings in a row from an old friend, and we were about to finish up Bedford Avenue. Looking at what we learned from Bedford Avenue, we said, ‘If we had acquired all of our Bedford Avenue properties at one time and redeveloped them as we went there, we would have paid less and we would have seen the benefit of increasing the property values around us—which, instead, we just had to pay for.’ I think that what we learned from Bedford Avenue is what we want to take to Fort Avenue.”
After buying those five buildings, Calfee—along with his wife, Erica Kerns-Calfee—discovered a former dry cleaner’s building on Fort Avenue and transformed it into event venue Casa Nueva, which opened last year. They subsequently bought the Bee Line garage building from Kevin Jones, owner and president of Bee Line Transport, Inc., and they plan to bolt Casa Nueva and the garage together and build up on the garage.
“We’re planning to add some rooftop terraces,” Calfee added. “If you can imagine, it’s the Fourth of July at the Hillcats Stadium and there’s a semi-pro soccer game happening over there—it’d be a cool spot to be in to watch fireworks.”
Penny Lane’s work at the other five Fort Avenue buildings has kickstarted with an exciting dual development that marries a fan-favorite sport (soccer) with a fan-favorite cuisine (Mexican): Stadium District Indoor Soccer and a second Taco Jesús location, both of which launched in March.
The project has been one of the most involved that Penny Lane has taken on yet—the Taco Jesús building did not have a roof—but Calfee said that it has also been one of the most rewarding projects yet.
“These buildings, every day, once you rebuild them, move into a state of decay if you’re not constantly maintaining them,” he remarked.
“As people age and end their careers, and as their financial resources change, they just don’t have the ability to maintain these buildings in the same way. That creates opportunities for guys like me to come along and say, ‘Hey, I can look at this with new eyes, and we can put something different in here.’ That place has been auto parts for the last 70 years or more. What we saw was something completely different, and I think that’s part of the ‘American Dream’ story. Not only are these old buildings getting new life, but there’s also this idea that there are people who might have been marginalized before who now have the opportunity to chase down that ‘American Dream’ by being part of these kinds of projects.”
Depending on how the venture goes, Calfee noted that an expansion into the building next door is possible and could allow for the addition of more fields and bigger fields. Redevelopment is also currently ongoing at the former site of The Carpet Shop, and Penny Lane is adding a new building and an infill lot in the middle of the two buildings for a mixed-use commercial, residential, and office space. The firm also recently completed work on the Humbles Building on Fifth Street.
With so many irons in the fire—Calfee is also the director of marketing at Hurt & Proffitt and a father of three children, among other roles—one may wonder how he does it all. While that question seems unanswerable, Calfee credits Kerns-Calfee, his friends and colleagues from both of his occupations, and others for their own tireless work and for their unwavering support of his endeavors.
“For me to have been carrying so much for so long, then for Johanna to pass, then for me to be a single dad, and then to find love and a partner in Erica—that’s an important part of my journey,” he said. “Having friends locally is a big part of my journey, too. When you think about the subcontractors and partners that we have in redevelopment, we’ve got some really great friends who do great work. We couldn’t do what we do without them. And then you think about finances; we couldn’t do what we do without folks like Luke Towles at Pinnacle [Financial Partners], Sherri Sackett at Select [Bank], H.B. Hunter at First Bank [and Trust], and Brent Jenkins at Freedom First [Credit Union].”
No matter what the future holds for Calfee in his many ventures, one thing is for certain: his love for and commitment to the Lynchburg community are for life.
“Being part of our city and improving our city are the most rewarding things about what I do,” he stated. “I love Lynchburg. Yes, my primary residence is across the county line, but that doesn’t change the fact that my entire portfolio of properties is in Lynchburg because I love it! We want to be here. We’re not outsiders—we don’t come in from somewhere else, make our money, and move out. In fact, we’re the opposite: We’ve invested all of our own money into these properties in order to make Lynchburg a better place to be. We’re just big believers in Lynchburg.”
This article was originally published in the April/May 2026 issue of Lynchburg Business magazine.
