Urstadt Biddle Properties

The following excerpt comes directly in the book after a dramatic account of the attempted hostile takeover of Urstadt Biddle's predecessor, HRE Properties, by a large real estate organization (latter a REIT) called Kimco. The fending off of that attempt and the elevation of Charles J. Urstadt to CEO marked the beginning of Urstadt Biddle Properties' modern history and set the tone and general direction for the business that remains in effect Chapter A New Business Plan The elevation of Charles J. Urstadt to CEO of HRE Properties in 1989 was occasioned by the fight to keep the company from being swallowed up by Kimco. But the ultimate significance of the move went far beyond HRE's prolonged struggle to remain independent. In fact, the consequences of Urstadt's new position for HRE's ongoing operations would completely overshadow Kimco's attempt at a hostile takeover. Urstadt did not just represent a new face at the top of HRE. He was not at the helm just to guide it through the current storm. He was a man with a plan, and stood for an entirely new direction in the company's business. Indeed, at their meeting of September 19, 1989, the Trustees not only voted to make Urstadt HRE's CEO, they also voted acceptance of his business plan to redirect the Trust, geographically consolidating its holdings in the Northeast while focusing on the acquisition and management of neighborhood shopping centers. Urstadt dedicated himself to fending off Kimco because, first of all, he firmly believed that HRE could maximize its profits by staying small. For Urstadt, it was a matter of basic business philosophy. "In large companies, entrepreneurial decisions do not exist," Urstadt, who had learned from experience, said. "Only the political perspective does. People try to impress the boss as they seek various perks." Having served at or near the top in several major real estate firms, as the head of New York State's Division of Housing and Community Renewal, and as the first