Sava Lelcaj, owner of Sava's Restaurant and babo: a market by Sava, recently had a window display installed at the site of her new market on the first floor of Sterling 411 Lofts.

Lizzy Alfs | AnnArbor.com

A flying bike, baguettes, an oven and a bowl of fruit adorn a window display at babo: a market by sava, welcoming Ann Arbor residents to what she calls the “true neighborhood grocery store.”

Although renovations to the space on the corner of Washington and Division streets were slightly delayed, Lelcaj said everything is quickly coming into place.

“They’re installing the ventilation system and then the drywall will go up after that,” she said. “The floor is going to be a really artsy stained concrete. Construction should be done at the end of this month and then we’ll move everything in.”

Sarah Power, left, and Sava Lelcaj stand in the empty 3,800-square-foot babo space in May.

Melanie Maxwell | AnnArbor.com

Lelcaj also decided to expand her rented space in 411 Lofts by 1,500 square feet to add an employee room, an office, walk-in coolers and storage space. She now has a total of 5,500 square feet for the market.

“After realizing how many products we wanted to bring in, we decided we need more space,” she said.

Lelcaj, who signed a 10-year lease to occupy the space in April, called her vision for the market “ambitious.”

The floor plan for babo includes areas designated for a wine and espresso bar, deli, bakery, produce, grocery and apothecary. She wants to provide breakfast in bed for 411 residents, a rooftop herb garden, grocery delivery, food and drink tastings and outdoor seasonal produce sales.

“We definitely want to bring a lot of action and excitement to this corner,” she said.

Lelcaj’s decision to open the market comes as her State Street restaurant, Sava’s Restaurant, has taken off since moving to the west side of the street in 2009. Lelcaj said the new market is just one of her many ideas for Ann Arbor.

With babo taking another 1,500 square feet and 411 moving its leasing office to the first floor, the high-rise no longer has vacant retail space, said Mark Foraker, senior vice president of The Dinerstein Companies, which bought Sterling 411 Lofts in December.

“We’re moving our leasing office downstairs with Subway and the market,” he said. “It puts us on the street, which I think is better for business. With competitors like The Varsity potentially coming in, our operations are better suited on the street where we’re more accessible.”

Lizzy Alfs is a business reporter for AnnArbor.com. Reach her at 734-623-2584 or email her at lizzyalfs@annarbor.com. Follow her on Twitter at http://twitter.com/lizzyalfs.