Lender takes title to six Schulman properties - Principal Financial Group Inc. takes ownership of six properties in Westchester County, New York developed by Schulman Realty Group

Real Estate Weekly, June 17, 1992 by Therese Fitzgerald

The holder of the permanent mortgage on six Westchester properties took title to them on Friday.

The properties were developed by Schulman Realty Group, which until recently was one of the largest owner/operators in the county.

The lender is Principal Financial Group, an insurance and financial services concern based in Des Moine, Iowa. Principal Mutual, its largest member company, will now hold the title on the properties.

Rob Dirks, regional administrator, Principal Financial Group, said the proceedings were technically not a foreclosure. The complicated transaction, he said, was closer to a sale. The action resulted, he said, from "the economics of what's happening in the marketplace."

Rostenberg-Doern, of Westchester, has been appointed to handle the leasing for the properties and Halpern Enterprises will manage them.

The six buildings, located along the 1-287 corridor are: 2 and 4 Gannet Drive in Harrison; 4 Corporate Park Drive in Harrison; 2975 Westchester Avenue in Purchase; and 244 Westchester Avenue and 12 Water Street in White Plains. The buildings total 590,000 square feet.

According to John Rostenberg, principal of Rostenberg Doern, all but one of the properties was built in the 80's (4 Corporate Park Drive was built in the 70's). 2975 Westchester Avenue, built in 1986, is the newest property in the area, he said.

The Schulman ownership, leasing and management portfolio until last month contained 26 of its own properties. In May, the lender on 18 of the properties, Aldrich Eastman and Waltch, L.P., acting as pension fund manager for the General Motors Pension Fund, exercised its option to take over the management and the leasing. Ashforth Realty Group has been appointed to manage the properties and the Edward S. Gordon Company, Inc. is handling the leasing.

Kevin McCall of Alrich Eastman and Waltch told REW that while they maintain day-to-day operations and control they have not taken title on those 18.

Schulman Realty Group still controls two properties.