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JMB Realty Corp. was the undisputed champion of real estate investment and ownership in the 1980s.
And, despite a less opportunistic economy, the 1990s are not being wasted by the Chicago-based company. JMB has moved in new directions to maintain its leadership role in the national real estate community.
"The difference between MB and other management companies is that they own and manage properties for their own portfolio, as well as for third parties, so they are more savvy in pursuing tenants than companies not involved in real estate ownership directly," said Henry Dong, real estate asset manager of Teachers Insurance and Annuity Association.
Third-party management is one of several major directions in which MB is expanding, some others being shopping center acquisitions for renovation and repositioning and the use of real estate investment trusts as financing vehicles.
"We sat back last year and realized that we have a tremendous organization handling real estate services and asset management for our existing investment clients," said Neil G. Bluhm, president of JMB. Realty Corp. "We felt that we should provide those services to other parties."
The result was the formation of JMB Real Estate Services Inc., blending JMB Realty's financial and investment groups, property management and leasing professionals and many other areas of expertise into one organization.
It also brings the full force of JMB's national influence to bear for companies that need such support in these trying times. One such company was Xerox-owned Talegen Corp. (formerly Crum & Forster), which had a mixed portfolio of assets that JMB disposed of for more than $33 million.
"Their national contacts got them in the door," said Richard L. White, senior vice president of International Insurance Co., an affiliate of Talegen in Chicago. "But, beyond that, they had a can-do attitude by specialists in apartments, raw land, leasing and buy-out type transactions."
In its program for Talegen, JMB won the interest of several private investors as well as a user-buyer to dispose of real estate in 18 locations around the country.
"We don't have a real estate problem anymore," White said. "We've been out of the real estate business since New Year's Eve. To a large extent, the kudos belong to JMB. They were focused and, in the end,...