A. Alfred Taubman
Encyclopedia
Adolph Alfred Taubman is an American
real estate developer and philanthropist
from Michigan
. He pioneered the modern shopping mall concept and was described by CBS News
as a "legend in retailing" who became wealthy developing upscale shopping malls. He built shopping mall developer Taubman Centers
into a retailing powerhouse. He wrote Threshold Resistance: The Extraordinary Career of a Luxury Retailing Pioneer in 2007.
, to Jewish immigrants Philip and Fannie Taubman, who came to the United States from Bialystok
, in northeastern Poland
. His mother was his father's second cousin. Philip took a job with the Wilson Foundry Company in Iowa
, transferred to Pontiac in 1920, became a fruit farmer, then began developing commercial real estate and custom homes.
Taubman's parents lost everything in the Depression
of the 1930s, and Taubman at age 9 had to find work to help support the family. He has said of that time in his life:
"I really wanted to make some money."
where he was a member of Zeta Beta Tau Fraternity
and Lawrence Technological University
, but graduated from neither. He wondered where middle-class families moving to the suburbs would shop. "Demographically, I looked at the numbers, and as far as I was concerned we couldn't miss. And we didn't," he said. Taubman chose upscale areas for lavish shopping centers, offering fountains and prestigious anchor stores like Neiman Marcus
. Taubman is famous for his attention to detail such as choosing terrazzo tiles at Short Hills. He said:
"|The only point that the customer actually touches the shopping center is the floor. They've got traction as they're walking. Very important. Some of our competitors put in carpet. Carpet's the worst thing you can have because it creates friction."
Real estate developer and partner Louis Dubin
spoke glowingly about Taubman:
"He is the most knowledgeable person I have ever met with the planning and design of real estate ... He's an incredible adviser. There's not a building we build that we don't ask him to look at the plans. He critiques everything–the parking, the closets. He's very meticulous. He has the best eye I've ever seen in my life.
Taubman's hard work and business acumen paid off. Developments such as the Mall at Short Hills in New Jersey
continue to be ranked among the most profitable shopping centers in the country. Since the early years, he made a fortune which Forbes
magazine estimated at $2 billion. He married Judith Mazor who was the 1962 Miss Israel. He was on the list of Forbes 400 Richest Americans
for two decades.
Taubman bought A&W Restaurants
in 1982. He said, "There is more similarity in a precious painting by Degas and a frosted mug of root beer
than you ever thought possible." He sold A&W to Sagittarius Acquisitions in December 1994.
From 1983 to 1984, Taubman was the majority owner of the Michigan Panthers
of the United States Football League
. Although the Panthers acquired a fairly loyal following and won the first USFL title in 1983, the USFL's decision to move from the spring to the fall led Taubman to merge his team with the Oakland Invaders
for the 1985 season, with himself as majority owner of the Invaders. That team folded along with the rest of the USFL after the 1985 season.
In October 2003, his real estate firm Taubman Centers
survived a hostile takeover
bid by the Simon Property Group
and Westfield America.
He also invested in the real estate investment firm of his stepdaughter's husband, Louis Dubin
, in the 1990s and early 2000s.
, in 1983, acting as a white knight
when the company was threatened by a hostile and unwanted takeover
by Marshall Cogan
and Steven Swid of General Felt. Many in the snobby art world "scoffed," according to CBS News
. He said: "We were just merchants ... shopping mall guys." But he turned around the floundering auction house by redesigning the New York headquarters with such additions as luxury boxes for clients' privacy as well as escalators. "I wanted to create an open feeling where all the goods were available to everyone," he said. He revived the fortunes of Sotheby's, which had been slumping in the eighties; he took the company public in 1988. His family divested controlling interest in Sotheby's by September 2005.
and rival auction house Christie's
led to a confession by Sotheby's CEO Diana Brooks of an elaborate price fixing scheme with her counterpart at Christie's, Christopher Davidge. In a plea bargain arrangement, prosecutors offered to keep her out of prison if she agreed to implicate Taubman. She did, and thereafter Taubman was convicted in a jury trial of price fixing. He was fined $7.5 million (USD) and imprisoned for ten months in 2002 for anti-trust violations. Taubman was released in 2003.
Taubman insisted on his innocence in his autobiography Threshold Resistance, which appeared in 2007. He has said that Brooks "lied many times" under oath and said "If she discussed it with me I would have thrown her out of my office in five minutes." According to Taubman, Brooks was just protecting herself from going to jail.
Taubman has donated large sums to the University of Michigan
, and many buildings there are named after him, including the A. Alfred Taubman Biomedical Science Research Building, the Taubman Health Sciences Library and Taubman Health Care Center. A school within the university is also named for him: the Taubman College of Architecture and Urban Planning
. Taubman is also a major sponsor of disease research: his latest donation, a gift of $5 million to support the University of Michigan's Dr. Eva Feldman
's and Dr. Yehoash Raphael's research, was aimed at the development of new treatments for Lou Gehrig's Disease and deafness, respectively. In 2011, Taubman donated $56 million to medical research. These donations brought his lifetime giving to Michigan to $141 million, making him the largest donor in the school's history.
He also donated to the Taubman Center for Public Policy at Brown University
, and The Taubman Center for State and Local Government at Harvard University
. The A. Alfred Taubman Student Services Center at Lawrence Technological University
was completed in 2006.
The A. Alfred Taubman Center for Design Education at the College for Creative Studies
was completed in 2009, in which Taubman contributed $15 million to the $145 million restoration and remodeling of what once was the General Motors Argonaut Building
.
Taubman has led an active social life which includes parties attended by Lightyear Capital
's Donald Marron
, Donald Trump
, and Henry Kissinger
.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
real estate developer and philanthropist
Philanthropist
A philanthropist is someone who engages in philanthropy; that is, someone who donates his or her time, money, and/or reputation to charitable causes...
from Michigan
Michigan
Michigan is a U.S. state located in the Great Lakes Region of the United States of America. The name Michigan is the French form of the Ojibwa word mishigamaa, meaning "large water" or "large lake"....
. He pioneered the modern shopping mall concept and was described by CBS News
CBS News
CBS News is the news division of American television and radio network CBS. The current chairman is Jeff Fager who is also the executive producer of 60 Minutes, while the current president of CBS News is David Rhodes. CBS News' flagship program is the CBS Evening News, hosted by the network's main...
as a "legend in retailing" who became wealthy developing upscale shopping malls. He built shopping mall developer Taubman Centers
Taubman Centers
Taubman Centers is an owner of United States upscale regional malls and has headquarters in Bloomfield Hills, Michigan. The Taubman Asia subsidiary is headquartered in Hong Kong. It has the highest selling portfolio of malls in any mall company in the United States.Taubman was founded in 1950 by...
into a retailing powerhouse. He wrote Threshold Resistance: The Extraordinary Career of a Luxury Retailing Pioneer in 2007.
Background
Taubman was born in Pontiac, MichiganPontiac, Michigan
Pontiac is a city in the U.S. state of Michigan named after the Ottawa Chief Pontiac, located within the Detroit metropolitan area. As of the 2010 census, the city had a total population of 59,515. It is the county seat of Oakland County...
, to Jewish immigrants Philip and Fannie Taubman, who came to the United States from Bialystok
Bialystok
Białystok is the largest city in northeastern Poland and the capital of the Podlaskie Voivodeship. Located on the Podlaskie Plain on the banks of the Biała River, Białystok ranks second in terms of population density, eleventh in population, and thirteenth in area, of the cities of Poland...
, in northeastern Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
. His mother was his father's second cousin. Philip took a job with the Wilson Foundry Company in Iowa
Iowa
Iowa is a state located in the Midwestern United States, an area often referred to as the "American Heartland". It derives its name from the Ioway people, one of the many American Indian tribes that occupied the state at the time of European exploration. Iowa was a part of the French colony of New...
, transferred to Pontiac in 1920, became a fruit farmer, then began developing commercial real estate and custom homes.
Taubman's parents lost everything in the Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
of the 1930s, and Taubman at age 9 had to find work to help support the family. He has said of that time in his life:
"I really wanted to make some money."
Shopping mall development
Taubman studied architecture at the University of MichiganUniversity of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
where he was a member of Zeta Beta Tau Fraternity
Zeta Beta Tau
Zeta Beta Tau was founded in 1898 as the nation's first Jewish fraternity, although it is no longer sectarian. Today the merged Zeta Beta Tau Brotherhood is one of the largest, numbering over 140,000 initiated Brothers, and over 90 chapter locations.-Founding:The Zeta Beta Tau fraternity was...
and Lawrence Technological University
Lawrence Technological University
Lawrence Technological University, also known as Lawrence Tech or simply LTU, is a private university located in Southfield, Michigan. The school offers undergraduate, masters, and doctoral programs in engineering, science, mathematics, architecture, graphic design, and business...
, but graduated from neither. He wondered where middle-class families moving to the suburbs would shop. "Demographically, I looked at the numbers, and as far as I was concerned we couldn't miss. And we didn't," he said. Taubman chose upscale areas for lavish shopping centers, offering fountains and prestigious anchor stores like Neiman Marcus
Neiman Marcus
Neiman Marcus, formerly Neiman-Marcus, is a luxury specialty retail department store operated by the Neiman Marcus Group in the United States. The company is headquartered in the One Marcus Square building in Downtown Dallas, Texas, and competes with other department stores such as Saks Fifth...
. Taubman is famous for his attention to detail such as choosing terrazzo tiles at Short Hills. He said:
"|The only point that the customer actually touches the shopping center is the floor. They've got traction as they're walking. Very important. Some of our competitors put in carpet. Carpet's the worst thing you can have because it creates friction."
Real estate developer and partner Louis Dubin
Louis Dubin
Louis Myerberg Dubin is a prominent fourth-generation New York City real estate developer notable for developing upscale condominiums, typically in large east-coast United States cities. His firm Athena often sold condominiums to middle and upper-middle class buyers by touting affordability and...
spoke glowingly about Taubman:
"He is the most knowledgeable person I have ever met with the planning and design of real estate ... He's an incredible adviser. There's not a building we build that we don't ask him to look at the plans. He critiques everything–the parking, the closets. He's very meticulous. He has the best eye I've ever seen in my life.
Taubman's hard work and business acumen paid off. Developments such as the Mall at Short Hills in New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
continue to be ranked among the most profitable shopping centers in the country. Since the early years, he made a fortune which Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
magazine estimated at $2 billion. He married Judith Mazor who was the 1962 Miss Israel. He was on the list of Forbes 400 Richest Americans
Forbes 400
The Forbes 400 or 400 Richest Americans is a list published by Forbes Magazine magazine of the wealthiest 400 Americans, ranked by net worth. The list is published annually in September, and 2010 marks the 29th issue. The 400 was started by Malcom Forbes in 1982 and treats those in the list like...
for two decades.
Taubman bought A&W Restaurants
A&W Restaurants
A&W Restaurants, Inc., is a chain of fast-food restaurants, distinguished by its draft root beer and root beer floats. A&W was arguably the first successful food franchise company, starting franchises in 1921 in California. Today it has franchise locations throughout the world, serving a typical...
in 1982. He said, "There is more similarity in a precious painting by Degas and a frosted mug of root beer
Root beer
Root beer is a carbonated, sweetened beverage, originally made using the root of a sassafras plant as the primary flavor. Root beer, popularized in North America, comes in two forms: alcoholic and soft drink. The historical root beer was analogous to small beer in that the process provided a drink...
than you ever thought possible." He sold A&W to Sagittarius Acquisitions in December 1994.
From 1983 to 1984, Taubman was the majority owner of the Michigan Panthers
Michigan Panthers
The Michigan Panthers were a professional American football team that played in the United States Football League in the mid-1980s.-Team history:The Michigan Panthers were named as a charter member of the United States Football League on May 11, 1982....
of the United States Football League
United States Football League
The United States Football League was an American football league which was in active operation from 1983 to 1987. It played a spring/summer schedule in its first three seasons and a traditional autumn/winter schedule was set to commence before league operations ceased.The USFL was conceived in...
. Although the Panthers acquired a fairly loyal following and won the first USFL title in 1983, the USFL's decision to move from the spring to the fall led Taubman to merge his team with the Oakland Invaders
Oakland Invaders
Oakland Invaders was a professional American football team that played in the United States Football League from 1983 through 1985.-In reaction to the Raiders relocating to Los Angeles:...
for the 1985 season, with himself as majority owner of the Invaders. That team folded along with the rest of the USFL after the 1985 season.
In October 2003, his real estate firm Taubman Centers
Taubman Centers
Taubman Centers is an owner of United States upscale regional malls and has headquarters in Bloomfield Hills, Michigan. The Taubman Asia subsidiary is headquartered in Hong Kong. It has the highest selling portfolio of malls in any mall company in the United States.Taubman was founded in 1950 by...
survived a hostile takeover
Takeover
In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...
bid by the Simon Property Group
Simon Property Group
Simon Property Group, Inc. is an American commercial real estate company, ranked #1 in the United States as the largest real estate investment trust. Simon is a fully integrated real estate company which operates from five retail real estate platforms: regional malls, Premium Outlet Centers, The...
and Westfield America.
He also invested in the real estate investment firm of his stepdaughter's husband, Louis Dubin
Louis Dubin
Louis Myerberg Dubin is a prominent fourth-generation New York City real estate developer notable for developing upscale condominiums, typically in large east-coast United States cities. His firm Athena often sold condominiums to middle and upper-middle class buyers by touting affordability and...
, in the 1990s and early 2000s.
Sotheby's
Taubman bought the ailing British auction house, Sotheby'sSotheby's
Sotheby's is the world's fourth oldest auction house in continuous operation.-History:The oldest auction house in operation is the Stockholms Auktionsverk founded in 1674, the second oldest is Göteborgs Auktionsverk founded in 1681 and third oldest being founded in 1731, all Swedish...
, in 1983, acting as a white knight
White knight (business)
In business, a white knight, or "friendly investor," may be a corporation or a person that intends to help another firm. There are many types of white knights...
when the company was threatened by a hostile and unwanted takeover
Takeover
In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...
by Marshall Cogan
Marshall Cogan
Marshall S. Cogan is an investor and entrepreneur and former financier and trader. Cogan was the founder of United Automotive Group, which he built into one of the largest retailers of cars and trucks in the U.S. As a private equity investor, Cogan acquired a number of businesses in the 1970s and...
and Steven Swid of General Felt. Many in the snobby art world "scoffed," according to CBS News
CBS News
CBS News is the news division of American television and radio network CBS. The current chairman is Jeff Fager who is also the executive producer of 60 Minutes, while the current president of CBS News is David Rhodes. CBS News' flagship program is the CBS Evening News, hosted by the network's main...
. He said: "We were just merchants ... shopping mall guys." But he turned around the floundering auction house by redesigning the New York headquarters with such additions as luxury boxes for clients' privacy as well as escalators. "I wanted to create an open feeling where all the goods were available to everyone," he said. He revived the fortunes of Sotheby's, which had been slumping in the eighties; he took the company public in 1988. His family divested controlling interest in Sotheby's by September 2005.
Antitrust Conviction
In the early 2000s, an investigation into alleged price-fixing between Sotheby'sSotheby's
Sotheby's is the world's fourth oldest auction house in continuous operation.-History:The oldest auction house in operation is the Stockholms Auktionsverk founded in 1674, the second oldest is Göteborgs Auktionsverk founded in 1681 and third oldest being founded in 1731, all Swedish...
and rival auction house Christie's
Christie's
Christie's is an art business and a fine arts auction house.- History :The official company literature states that founder James Christie conducted the first sale in London, England, on 5 December 1766, and the earliest auction catalogue the company retains is from December 1766...
led to a confession by Sotheby's CEO Diana Brooks of an elaborate price fixing scheme with her counterpart at Christie's, Christopher Davidge. In a plea bargain arrangement, prosecutors offered to keep her out of prison if she agreed to implicate Taubman. She did, and thereafter Taubman was convicted in a jury trial of price fixing. He was fined $7.5 million (USD) and imprisoned for ten months in 2002 for anti-trust violations. Taubman was released in 2003.
Taubman insisted on his innocence in his autobiography Threshold Resistance, which appeared in 2007. He has said that Brooks "lied many times" under oath and said "If she discussed it with me I would have thrown her out of my office in five minutes." According to Taubman, Brooks was just protecting herself from going to jail.
Philanthropy
University of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
, and many buildings there are named after him, including the A. Alfred Taubman Biomedical Science Research Building, the Taubman Health Sciences Library and Taubman Health Care Center. A school within the university is also named for him: the Taubman College of Architecture and Urban Planning
Taubman College of Architecture and Urban Planning
The A. Alfred Taubman College of Architecture and Urban Planning is an undergraduate and graduate institution for the built environment at the University of Michigan. Formerly known as the College of Architecture and Urban Planning, Taubman College gained the namesake of real estate developer and...
. Taubman is also a major sponsor of disease research: his latest donation, a gift of $5 million to support the University of Michigan's Dr. Eva Feldman
Eva Feldman
Dr. Eva L. Feldman, M.D. is the Russell N. DeJong Professor of Neurology at the University of Michigan's School of Medicine....
's and Dr. Yehoash Raphael's research, was aimed at the development of new treatments for Lou Gehrig's Disease and deafness, respectively. In 2011, Taubman donated $56 million to medical research. These donations brought his lifetime giving to Michigan to $141 million, making him the largest donor in the school's history.
He also donated to the Taubman Center for Public Policy at Brown University
Brown University
Brown University is a private, Ivy League university located in Providence, Rhode Island, United States. Founded in 1764 prior to American independence from the British Empire as the College in the English Colony of Rhode Island and Providence Plantations early in the reign of King George III ,...
, and The Taubman Center for State and Local Government at Harvard University
Harvard University
Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...
. The A. Alfred Taubman Student Services Center at Lawrence Technological University
Lawrence Technological University
Lawrence Technological University, also known as Lawrence Tech or simply LTU, is a private university located in Southfield, Michigan. The school offers undergraduate, masters, and doctoral programs in engineering, science, mathematics, architecture, graphic design, and business...
was completed in 2006.
The A. Alfred Taubman Center for Design Education at the College for Creative Studies
College for Creative Studies
College for Creative Studies is an art education institution in the United States and was cited by BusinessWeek as one of the 60 best design schools in the world. It is a private, fully accredited, four-year college located in Detroit, Michigan...
was completed in 2009, in which Taubman contributed $15 million to the $145 million restoration and remodeling of what once was the General Motors Argonaut Building
Argonaut Building
The Argonaut Building, renamed in 2009 the A. Alfred Taubman Center for Design Education , is a large office building located in the New Center area of Detroit, Michigan. The building is located at 485 West Milwaukee Avenue, and is located across the street from Cadillac Place...
.
Taubman has led an active social life which includes parties attended by Lightyear Capital
Lightyear Capital
Lightyear Capital is a private equity firm focused on leveraged buyout and growth capital investments in financial services companies.The firm, which is based in New York City, was founded in 2002 with the backing of UBS AG by Donald Marron. Marron is best known for building up PaineWebber over a...
's Donald Marron
Donald Marron
Donald B. Marron is a financier, private equity investor and entrepreneur, notable as the chairman and chief executive officer of brokerage firm Paine Webber from 1980 through the sale of the company in 2000, as well as the founder of private equity firm Lightyear Capital and of Data Resources...
, Donald Trump
Donald Trump
Donald John Trump, Sr. is an American business magnate, television personality and author. He is the chairman and president of The Trump Organization and the founder of Trump Entertainment Resorts. Trump's extravagant lifestyle, outspoken manner and role on the NBC reality show The Apprentice have...
, and Henry Kissinger
Henry Kissinger
Heinz Alfred "Henry" Kissinger is a German-born American academic, political scientist, diplomat, and businessman. He is a recipient of the Nobel Peace Prize. He served as National Security Advisor and later concurrently as Secretary of State in the administrations of Presidents Richard Nixon and...
.
Further reading
- Mason, Christopher. The Art of the Steal: Inside the Sotheby's-Christie's Auction House Scandal. New York: G.P. Putnam's Sons. 2004. ISBN 0-399-15093-5
- Taubman, A. Alfred. Threshold Resistance: The Extraordinary Career of a Luxury Retailing Pioneer. ThresholdResistance.com New York: Collins. 2007 ISBN 978-0-06-123537-5
See also
- Woodward & LothropWoodward & LothropWoodward & Lothrop was a department store chain headquartered in Washington, D.C. Woodward & Lothrop was Washington, D.C.'s first department store, opening in 1887. Woodies, as it was often nicknamed, maintained stores in the Mid-Atlantic United States...
- May Department StoresMay Department StoresThe May Department Stores Company was a national department store chain in the United States, founded in 1877 by David May. The company ceased to exist in 2005 when it was merged with Federated Department Stores, Inc . Prior to the merger it was headquartered in Downtown St. Louis, Missouri...
- Wanamaker'sWanamaker'sWanamaker's department store was the first department store in Philadelphia, Pennsylvania, and one of the first department stores in the United States. At its zenith in the early 20th century, there were two major Wanamaker department stores, one in Philadelphia and one in New York City at Broadway...
- Michigan PanthersMichigan PanthersThe Michigan Panthers were a professional American football team that played in the United States Football League in the mid-1980s.-Team history:The Michigan Panthers were named as a charter member of the United States Football League on May 11, 1982....
- François PinaultFrançois PinaultFrançois Pinault is a French businessman who runs the retail company PPR. He is a friend of former French President Jacques Chirac....
- Louis DubinLouis DubinLouis Myerberg Dubin is a prominent fourth-generation New York City real estate developer notable for developing upscale condominiums, typically in large east-coast United States cities. His firm Athena often sold condominiums to middle and upper-middle class buyers by touting affordability and...
- Shopping mallShopping mallA shopping mall, shopping centre, shopping arcade, shopping precinct or simply mall is one or more buildings forming a complex of shops representing merchandisers, with interconnecting walkways enabling visitors to easily walk from unit to unit, along with a parking area — a modern, indoor version...
- Taubman CentersTaubman CentersTaubman Centers is an owner of United States upscale regional malls and has headquarters in Bloomfield Hills, Michigan. The Taubman Asia subsidiary is headquartered in Hong Kong. It has the highest selling portfolio of malls in any mall company in the United States.Taubman was founded in 1950 by...