The Taubman Company

The Taubman Company
Name	The Taubman Company
Type	Public (formerly)
Industry	Real estate investment trust
Founded	1950s
Founder	A. Alfred Taubman
Headquarters	Bloomfield Hills, Michigan, United States
Key people	Robert S. Taubman, Nicholas H. Schorsch
Products	Shopping centers, retail real estate

The Taubman Company The Taubman Company is an American real estate investment trust and mall developer known for creating and managing regional and super-regional shopping centers. Founded by A. Alfred Taubman, the company grew through partnerships, public offerings, and transactions involving major institutions and investors. Its activities intersect with firms, markets, and legal matters involving prominent figures and corporations across the United States and internationally.

History

The company traces roots to founder A. Alfred Taubman and early projects in Detroit and Michigan, following connections to Detroit and Bloomfield Hills, Michigan. During the late 20th century the firm expanded via joint ventures with entities such as Taubman Centers, Inc. predecessor interests, transactions involving Macerich, Simon Property Group, General Growth Properties, and partnerships with institutional investors like Blackstone Group, Goldman Sachs, Morgan Stanley, and JP Morgan. Corporate milestones included a public offering on the New York Stock Exchange, strategic asset sales involving Brookfield Asset Management, and leadership transitions to family members such as Robert S. Taubman alongside executives from firms like CBRE Group, Cushman & Wakefield, and Jones Lang LaSalle. The firm's expansion paralleled waves of consolidation in the shopping center sector involving companies like Chase Properties, Taubman Centers, Inc. competitors, and transactions influenced by market events such as the 2008 financial crisis and trends in retail spearheaded by retailers including Macy's, Sears, Nordstrom, Bloomingdale's, and Neiman Marcus.

Business Operations

Taubman operated as a developer, owner, and manager of regional malls and lifestyle centers, engaging with retailers such as Apple Inc., Walmart, Target Corporation, Costco Wholesale, Best Buy, and IKEA as anchor tenants. The company structured investments with real estate investment trusts like Equity Residential, capital partners including Kohlberg Kravis Roberts, The Carlyle Group, and pension funds such as CalPERS and Teacher Retirement System of Texas. Facilities management and leasing functions drew on relationships with brokerage houses including CBRE Group, Sotheby's Realty, and legal counsel from firms like Skadden, Arps, Slate, Meagher & Flom and Latham & Watkins. Financial structuring involved instruments traded on exchanges including the New York Stock Exchange and regulatory filings with the Securities and Exchange Commission.

Properties and Developments

Portfolio holdings encompassed flagship properties in metropolitan markets including Aventura Mall, Taubman Centers-developed assets such as The Mall at Short Hills, Oakbrook Center, Fairlane Town Center, and international projects in Asia and the Middle East involving partners like Mitsubishi Estate, Mitsui Fudosan, Emaar Properties, and sovereign investors such as Government of Singapore Investment Corporation affiliates. The company negotiated leases and redevelopment projects with national chains including H&M, Zara, Gap Inc., Forever 21, and luxury brands retailed by groups like LVMH and Kering. Proximity to transit hubs and municipalities such as Los Angeles, Chicago, New York City, Houston, Dallas, and Miami informed site selection and zoning interactions with local authorities and planning agencies.

Financial Performance

Financial results reflected revenues from leasing, management fees, and property dispositions, subject to metrics like funds from operations reported under accounting standards influenced by Financial Accounting Standards Board pronouncements and scrutiny from analysts at firms like Moody's Investors Service, S&P Global Ratings, and Fitch Ratings. Capital markets activity included debt issuance underwriters such as Goldman Sachs, Citigroup, and Bank of America Merrill Lynch, and equity transactions involving institutional allocators including Vanguard Group and BlackRock. Performance varied with retail sector cycles, tenant bankruptcies such as those of Toys "R" Us and Circuit City, and macroeconomic events including the Great Recession and shifts in consumer behavior toward e-commerce platforms like Amazon.

Corporate Governance and Ownership

Governance featured board members and executives drawn from corporate, legal, and financial sectors, with family representation from members of the Taubman family alongside independent directors from companies such as Procter & Gamble, General Motors, Ford Motor Company, and United Technologies Corporation. Shareholder composition included institutional investors such as Vanguard Group, BlackRock, and activist participants referenced in campaigns similar to those led by firms like Elliott Management Corporation and Carl Icahn. Transactions and restructurings engaged advisors from Skadden, Arps, Slate, Meagher & Flom and accounting firms including Ernst & Young, Deloitte, and PricewaterhouseCoopers.

Legal Issues and Controversies

The company's history intersected with high-profile legal matters involving founder A. Alfred Taubman, whose prosecution and sentencing drew attention alongside appeals and clemency debates involving figures connected to the United States Department of Justice and jurists from federal courts. Litigation over lease disputes, tenant bankruptcies, and property valuations involved law firms such as Jones Day and Sullivan & Cromwell, with cases heard in federal and state courts including the United States District Court for the Eastern District of Michigan. Controversies also arose around redevelopment projects, eminent domain disputes with municipalities, and environmental assessments reviewed under statutes administered by the United States Environmental Protection Agency.

Philanthropy and Community Impact

Philanthropic activities by the Taubman family and affiliated foundations supported institutions including University of Michigan, Yale University, Smithsonian Institution, Metropolitan Museum of Art, and medical centers such as Henry Ford Health System and Johns Hopkins Hospital. Cultural and educational donations funded galleries, scholarships, and civic projects in communities like Detroit, Ann Arbor, New York City, and Los Angeles, often coordinated with nonprofit partners such as United Way, Council on Foundations, and regional arts councils.

Category:Real estate companies of the United States Category:Shopping center management