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Lender takes control of Schulman buildings.

Lender takes control of Schulman buildings

The Schulman Realty Company of Westchester has had the management of most of its 26 buildings taken away by a Boston-based company that refinanced $95 million in debt in 1986 with pension movies.

Schulman has managed and leased its own space since it was founded by CEO Lowell M. Schulman in 1967 and had just recently announced the signing of the Edward S. Gordon company to an exclusive leasing arrangement. With 3 million square feet, Schulman owns 10 percent of the Westchester marketplace.

That market has suffered severe setbacks, however, as Fortune 100 companies consolidated and moved operations, leaving Schulman facing nearly 475,000 square feet in empty space. Even so, 84 percent of its properties are currently occupied.

Schulman Realty President H. Guy Leibler indicated the management change was not a result of finances, but of management philosophies. The company had recently embarked upon an $8 million renovation of two of its buildings. It also offers its 8,000 tenants-employee services that are commonplace in Westchester such as shuttle buses, dry cleaning, mobile banking, cafeterias, child care and health clubs.

The Boston-based Aldrich Eastman & Waltch acted as an agent for the General Motor's Corp. pension funds in the lending transaction that contained an option which has now left Schulman's 80 management group employees out of work as of May 16. Aldrich Eastman will take over 24 buildings, including those in luxurious corporate parks along I-287 and I-684, in White Plains and Purchase.

Schulman will retain management of two of his buildings - 500 Mamaroneck Avenue in Harrison, and 81 Main Street in White Plains - and as an avid golfer, is continuing with the development of the first golf course in the Hamptons in the last decade.

President H. Guy Liebler said the selection of a management company had not been made yet, and what will happen to the ESG arrangement "is also being discussed at this time." When asked how large a staff would be retained to operate the two remaining buildings, Liebler answered "very limited."
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Title Annotation:Schulman Realty Group, Aldrich Eastman & Waltch
Author:Weiss, Lois
Publication:Real Estate Weekly
Date:Jan 22, 1992
Previous Article:Tax assessments down, but 'not enough!'
Next Article:$100M in housing funds stuck in power play.

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