Bernard Freibaum, chief financial officer for General Growth Properties, began dumping his company stock six weeks ago.
As the shares plunged from $25 to $4, he was forced to unload them to repay loans, selling stakes worth more than $85 million, according to documents filed with the Securities and Exchange Commission.
Two weeks later, he resigned. Five days ago, General Growth demoted its chief executive and its president, replacing them with independent board members.
Then it announced it would sell some of its most famous shopping malls. Then it revealed that the family of Chairman John Bucksbaum had lent tens of millions to Freibaum and another executive to finance company stock ownership. The loans "did not follow internal company policy," General Growth said.
So it goes at one of metro Baltimore's biggest landlords.
It's too early to say how the General Growth disintegration will affect the town of Columbia, The Mall in Columbia, Towson Town Center, Mondawmin Mall and Harborplace in Baltimore, White Marsh Mall and other real estate owned by the Chicago-based company.
But malls are likely to be hawked for sale. Capital projects are likely to be delayed. Whether General Growth jettisons Baltimore properties or not, the people calling the shots are likely to be different a year from now. Don't count on General Growth being the future caretaker of Columbia.
"Everything at the company is up for sale. In pieces or the whole thing," says Mark Millman, an Owings Mills-based retail consultant.
General Growth, which got its Baltimore portfolio by buying Columbia-based Rouse Co., won't exactly confirm this but doesn't deny it, either. While it announced this week that Fashion Show Mall and other Las Vegas shopping centers are for sale, it hasn't said anything about Baltimore.
"We're certainly happy to discuss other properties" with qualified buyers, General Growth spokesman Jim Graham said. "We've had plenty of inquiries about properties all over the country."
General Growth's Village of Cross Keys, a hotel, retail and office complex in North Baltimore, has been on the block for months.
"A number of people thinking about buying it have called me," said retail consultant Rene Daniel, whose office is based there. He wouldn't identify them.
