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.

Palmera House Opens on Bedford Avenue

By: Izzi Diaz Young | Photos By: Ashlee Glen

Cozied up near the corner of Bedford Avenue is a brand new place where friends, family, and co-workers alike can gather. This venue combines a love of community, a passion for beautiful spaces, and an appreciation for healthy meals. Open since January of 2025, Palmera House has quickly become a pillar in the downtown-adjacent community, welcoming guests with its stunning design, heavy use of natural elements, and comfortable nooks.

Owner Erica Kerns-Calfee always had the concept of a place just like this within her heart. She began her professional career in varying corporate industries, spanning from transportation to interior design. She later transitioned into retail, where she worked at Pottery Barn and J.Crew. Through these career steps, Kerns-Calfee began to better understand the customer experience: what a shopper encounters both visually and experientially is crucial to the bigger picture of any business.

As a longtime lover of Bedford Avenue in Lynchburg, Kerns-Calfee reunited with the street and the city after spending a decade in Texas. She was then, and still is, a frequenter of the businesses that are now her own business’s neighbors, such as Golf Park Coffee and The Dahlia.

“I love spaces that have a magnetic pull,” she said. “I always thought, one day, I want to create something like that. A place where people love to be.”

After returning to Lynchburg, Kerns-Calfee joined the Moore & Giles team as VP of Product Development, Merchandising, and Design, where she worked for three years.

“I have such an appreciation for leather now; its history, anomalies, and how we should choose this material over things manufactured,” she noted. “Taking what could have been waste and turning it into something beautiful and loved for generations. It’s the patina that happens over time to furniture, vessels, leather, and art that makes them so coveted and special. These are the same layers you’ll find in Palmera House.”

Her unique vision and love for all things reclaimed soon took shape into a clear picture. She discovered that the establishment once holding Elliott’s Cleaners was under new ownership by Penny Lane Properties.

“I’ve been in the corporate world for nearly 30 years, so the thought of stepping away and taking this risk felt equal parts terrifying and invigorating,” she added. “We have this one little life to live and to learn, and taking chances is a big part of what gives our lives meaning. So, I decided to go for it.”

She crossed her fingers, pitched her concept, and just like that, Palmera House was in the works.

But the transformation didn’t happen overnight. The building had nearly no roof, no working water or sewer, no working electrical, and broken windows. With the goal of adding two additional floors for apartments above the future shop, there was work to do.

Despite all the challenges these issues may have presented, her imagination cut through.

“I saw it. The exact shop, just as it stands today,” she recalled. “I could see the bodega counter, the living wall, the rugs hanging, all of it.”

From there, the process of turning an aged structure into a new and modern cafe, lounge, and boutique truly began.

“I started with the layout of the space and identifying the partnerships I would need to make it all happen,” Kerns-Calfee remembered. “Then, the collecting began. The basement of my home became an incredible Tetris-like room of furniture pieces. I love that all of them have lived a long life before now and are being rebirthed in a new space to be enjoyed and loved again.”

The intricate and distinctive design choices within the main lounge area itself are only part of the overall picture. When visitors arrive at Palmera House, it might also be in their best interest to come hungry, ready to indulge in some of the flavorful options that span across the menu of Palmera Bodega, the cafe within the business.

“The menu was another fun creative moment,” Kerns-Calfee added. “I love smoothies, bowls, and salads, so I went to work crafting a menu of items that were recognizable, but with a few fun differentiators.”

Palmera Bodega, open from 7 a.m. to 7 p.m., offers guests a menu filled with salads, smoothies, and frozen paletas, to cold brew directly from the shop’s adjacent establishment, Golf Park Coffee. After patrons enjoy their meal, they are invited to travel to the retail side of the shop, where they can discover esteemed brands such as Abigail Ahren, Berg’s Potter, and John Derian.

The living wall serves as any plant-lover’s dream and beyond, as it is overflowing with a variety of alluring plants, pots, plant-care, plant accessories, and more.

The unmistakable comfort and relaxed feel of the shop comes from Kerns-Calfee herself, as she relayed how much it resembles her own living space.

“It’s an explosion of plants and greenery, layered with antique pieces, and stacks of books in every corner,” she continued.

“Home is about surrounding yourself with the things that you love. That is what Palmera House is for me. I hope others fall in love with those things too.”
In conjunction with serving as a bustling cafe during the day, Kerns-Calfee noted her favorite time in the shop is from 4 p.m. to 7 p.m.

“I love when the sun dips, the lights are low, and there is this incredible energy shift.

We pour natural wines and open craft beers,” she said. “Friends are gathering to catch up, play cards, or decompress from the workday.”

The community that surfaces during these hours creates an extremely special time for all who step inside, including Kerns-Calfee, who is reminded of her initial prescience of the space.

When inquired about any future dreams for her business, Kerns-Calfee hopes that it will be a place where people simply love to be. She said she wants it to be the first place someone thinks of when deciding where to go, a place where people enter the doors and immediately feel home.

“I want everyone who walks in to enjoy being here: working, having meetings, and spending time with friends,” she explained. “I want them to always find warmth and kindness from our team.”

The love that Kerns has for the city of Lynchburg is evident. She fondly referred to her town as a “boomerang city,” a place where many of the current residents arrived in their youth and then left to explore other cities and opportunities. But, like so many, Kerns-Calfee made the decision to come home.

“The magnet-pull of Lynchburg stays in the heart. It is such a special place,” she gushed. “I speak to so many people who, like me, have left and returned. To come back to a city I love and create something beautiful for the people who call Lynchburg home truly feels like a gift.”

What’s next for Palmera House? In 2025, the business’s sister company, Casa Nueva on Fort Avenue near the City Stadium, will open as well. Kerns-Calfee described this venture as “a large and incredibly beautiful space that, like Palmera House, will be filled with greenery, bringing the outdoors in for private events.”

The Casa Nueva space will be available for rent, where it can hold larger events or special occasions with an overall ambience that resembles Palmera House.
“If you dream of an outdoor event, but fear the unpredictability of weather, Casa Nueva could be the perfect location! We’re hoping to have the space ready to rent in April of 2025,” noted Kerns-Calfee.

Palmera House reaches out to the community of Lynchburg, welcoming everyone in with not only idyllic ambience, noteworthy meals, and specially curated products, but with a hug and a warm presence that reminds any who enter that this place is their home, too.

Erica Kerns’ Signature Style is Instinctual and Beautiful

Photos by Daryl Calfee

In every single room, the foundation has to be a vintage rug,” Erica Kerns said.

And she would know. Co-owner of BEFound Collective, a shop that sources one-of-a-kind, handwoven vintage and antique Persian and Turkish rugs, and Vice President of Merchandising and Product Development for Moore & Giles, Kerns has a penchant for finding just the right piece to tell a story and pull a space together.

Walking through her home with her foster-turned-adopted dog Nora, Kerns exudes an effortless style, and her home is an extension of that. Her 1937 Dutch Colonial home is a nod to the era—with its galley kitchen and wood paneled rooms. But Kerns, who purchased the home in 2021, has brought new life to the space while maintaining some of the home’s defining quirks.

“The smoking room is one of the things that sold me on the house,” Kerns said, referring to the wood-paneled room that connects to the galley kitchen via the pass-through window. 

While she could have easily painted the wood paneling from the walls, Kerns instead opted to keep them intact to allow the room to maintain its rich dimension. Art, light fixtures, and natural elements adorn the walls, giving the room a Ralph Lauren–esque feel while the textiles—vintage rug, handwoven fabrics—make the space entirely her own.

It’s this type of layering that is Kerns’ signature style. Throughout her home, trinkets and oddities are stacked on top of vintage furniture. Sweeping Monsteras sit in beautifully textured vessels. Seashells act as paperweights atop children’s books or high school physics books from the 1930s. It’s a curation that seems instinctual to Kerns, who is constantly collecting items for her home.

“It doesn’t matter where I am, I’m hunting,” she said. “Ninety percent of the things in my home are secondhand. As long as you mix everything in the right way, there is balance.
If it’s all new, it doesn’t have soul. If it’s all old, it can lack the edge needed to feel fresh.”

Kerns credits her travels for many of the eclectic pieces in her home, including her most recent work trip to Genova, Italy, when she came home with a treasure trove of art. Kerns purchased extra suitcases, painstakingly wrapped the art in her clothing, and hauled the bags from train stations to hotels to airports just to get them all home.

Originally from Nashville, Tennessee, Kerns moved to Richmond after college.

In 2005, she moved to Lynchburg, holding a number of positions at J. Crew, including senior director of customer care; senior brand manager; and director of training, quality, and communications. In 2011, she moved to San Antonio, where she became a regular at a local auction house.

“Auctions weren’t as well-known as they are today,” she remembered. “It was the place to go. I would go to the auction house almost every single week. Sometimes I wouldn’t buy anything. One time, though, it was the end of the night, almost everyone else had left, and a lot of 100 pieces of art came up. I got the lot for $75.”

Walking through Kerns’ home, there is a mix of art that feels effortless but unrepeatable. Still life oil paintings share walls with paint-by-numbers (a favorite pastime of Kerns’). Vintage portrait paintings give way to ink sketches. Text art creates a platform for wildlife paintings.

“You don’t have to feel so tied to a theme or a palette,” she said. “I love taking nods from nature. Nature shows you how to mix tones and elements in a compelling way.”

Indeed, nature is abundant in Kerns’ home. She’s an avid seashell collector, whether they’re found on a beach or in a secondhand shop, and her collections are diverse enough for any scientific repository. Moose antlers dramatically frames a full-body mirror in the living room, antler mounts sit above doorways, and, of course, each space is layered with leather and shearling textiles from Moore & Giles.

“Texture and layers influence every room in the house,” Kerns said. “It’s intentional and it’s about layering light and color and texture in the right way. That’s what I want my home and future Palmera House to feel like. A space with interest in every corner and be something that you want to interact with and touch.”

Kerns’ newest venture, Palmera House, is an ode to her love of nature, textiles, beautiful art, and interesting details and the perfect amalgamation of her work and life experiences. It will be a shop for vintage home items, plants, and rugs. But Palmera Bodega, tucked inside the shop, is a reason to linger, have a bite and beverage, and enjoy a quiet moment in one of the many available nooks.

“It will be a multi-use space,” she explained. “With Palmera’s home decor and rugs being vintage or unique, each visit will feel like a new shopping experience. Mornings and lunch hour at the Bodega are sure to have a certain life and buzz. The space’s energy and ambiance will transition to a cozy, low-lit lounge after hours, where friends can gather and unwind from the day. Palmera Bodega will have a daily ‘Golden Hour’ serving aperitivos and distinctive snacks.”  

Kerns’ signature style is a beautiful collection of her travels, work, love of design, and vintage decor. Palmera House promises to be an extension of that hallmark. Palmera House will open on Bedford Avenue toward the end of this year.

“I hope Palmera House will be a favorite stop on the ever-changing Bedford Avenue,” Kerns said. “A place to feel inspired and a space you never want to leave. With short- and long-term rentals in the two floors above the shop, you’ll be able to stay for as long as you like—with Palmera House as your second living room.”