American real estate development company
The Rouse Company
Former Rouse headquarters
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Company type
| Commercial Real Estate Development
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Industry
| Retail and Mixed-Use Centers, Master Planned Communities ("New Towns")
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Predecessor
| Moss-Rouse Company
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Founded
| 1939
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Founder
| James Rouse
|
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Defunct
| 2004
|
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Successor
| General Growth Properties
,
The Howard Hughes Corporation
(2010)
|
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Headquarters
| Columbia, Maryland
, U.S.
|
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Key people
| James Rouse
,
Melvin J. Berman
,
Mathias J. DeVito
, Hunter Moss, Churchill Gibson Carey, Charles "Chili" Jenkins.
|
---|
Subsidiaries
| The American City Corporation, Howard Research and Development, Community Research and Development
|
---|
The Rouse Company
, founded by Hunter Moss and
James W. Rouse
in 1939, was a publicly held
shopping mall
and
community
developer from 1956 until 2004, when
General Growth Properties
(GGP) purchased the company.
Beginnings: Moss-Rouse Company
[
edit
]
The Moss-Rouse Company was founded as a FHA mortgage company with a loan from Hunter Moss's sister. Rouse leveraged his knowledge as loan guarantee specialist at the
Federal Housing Administration
to establish a Baltimore-based mortgage company specializing in FHA backed loans. Moss-Rouse hired a World War Two Navy friend, Churchill G. Carey from Connecticut General, who in turn provided capital for future projects. Carey would hold positions ranging from president to CEO of the mortgage company subsidiary.
[1]
In 1952-1953 the company built one of the first
modern architecture
office buildings on Saratoga Street in Baltimore, while also dropping its commercial lending business line. Jim Rouse hired his brother,
Willard Rouse II
, in 1952, and partner, Hunter Moss, phased out of operations, selling his shares of the company, while remaining temporarily on the board of directors.
[2]
The firm was renamed the
James W. Rouse & Company, Inc.
, with Rouse owning 50% equity, his brother, Willard, 10%, and 40%, to company officers.
[3]
The James W. Rouse Company
[
edit
]
The James W. Rouse Company built some of the first enclosed shopping malls, and it pioneered the development of
festival marketplaces
, such as
Jacksonville Landing
in
Jacksonville
,
Faneuil Hall
in
Boston
,
South Street Seaport
in
New York City
,
Harborplace
in
Baltimore
, and
Bayside Marketplace
in
Miami
. They also developed
The Shops at National Place
in downtown
Washington, D.C.
that opened in 1984?85.
On 20 June 1966, The James W. Rouse Company was renamed
The Rouse Company
.
[4]
The company has been credited as the pioneer of the first successful
food court
in an enclosed shopping mall, when the food court at the Sherway Mall in Toronto opened in 1971. It followed an unsuccessful attempt at the
Plymouth Meeting Mall
in 1968, which reportedly failed because it was "deemed too small and insufficiently varied."
The company moved its headquarters to the Cross Keys development, then to the project at Columbia, Maryland in December 1969.
[5]
Its community projects include the
Village of Cross Keys
in Baltimore and the
planned cities
of
Columbia, Maryland
(where it was headquartered),
Bridgeland Community, Texas
, and
Summerlin, Nevada
. To develop these projects, in 1962 Rouse brought on Bill Finley, who built a planned "company town",
Ravenswood, West Virginia
, was a former planner with the
National Capital Planning Commission
proposing planned cities, and was a proponent of public-private partnerships.
[6]
Columbia Research and Development was founded as a
public company
and Howard Research and Development was formed as a Rouse subsidiary in 1956 to raise capital for four mall projects and later to facilitate the Columbia Project with Connecticut General and Chase Manhattan as stakeholder with interest deferred loans.
[7]
In 1966 The James W Rouse Company was restructured as the Rouse Company, adding Howard Research and Development (HRD) as a separate entity shielded Rouse Corporation from debt liability of the Columbia development. HRD lost money, with new rules affecting the parent company as well. In 1974, HRD was refinanced.
[8]
Columbia Development Corporation was formed a subsidiary of HRD using subcontracted Rouse Company employees. In 1985 CIGNA (Connecticut General) divested its interest in HRD and the project back to Rouse for $120 million at a net loss.
[9]
[10]
Rouse created the subsidiary company The American City Corporation to take advantage of the
National Urban Policy and New Community Development Act of 1970
, A HUD program which granted developers incentives and loans to build Title VII "New Towns" with mandatory percentages of low income housing projects. Rouse's former ACTION member, Leo Molinaro was selected to run the subdivision.
[11]
The symposiums held by the company gathered together investors like George Mitchell, who would go on to develop
Woodlands, Texas
using the Columbia model.
[12]
[13]
The subsidiary was based at "Two Wincopin" in the second office building in built in Columbia in 1968. It was renamed the American City Building, using the subsidiary to lease the empty space and develop the system of Public-Private partnerships that Rouse would use worldwide to minimize risk in developments using public debt.
[14]
The business was given its own postal office, the American Cities Station in 1977.
[15]
The Columbia development was marketed as a progressive community for all races. In 1971, the company responded to pressure from the
NAACP
that the company was absent of African Americans at all management levels and its businesses in Columbia were predominantly white owned. The company responded with an affirmative action program in November 1971.
[16]
In 1973, the former assistant attorney general of Maryland,
Mathias J. DeVito
, left the Rouse-owned legal firm of
DLA Piper
to replace James W. Rouse as President of the Rouse Company, and Rouse became Chairman.
[17]
DeVito cut staff from 1,700 to 500 to keep the company afloat in 1975.
[18]
In 1974, the Columbia development got a political boost as the population of Columbia supported a slate of at-large council candidates with Columbia interests, including
Ruth U. Keeton
, Lloyd Knowles, and Columbia's city manager, Richard L. Anderson.
[19]
In 1979, Simon H. Schuer acquired a 7.5% interest in the Rouse Company. He was the creator of "The Shrink", a method where an investor buys an interest in a company, then orders stock buy-backs to make the interest more valuable. Schuer died the day after the purchase, and
Trizec Properties
then acquired the shares and bought a 25% stake. In 1986, the company attempted to purchase a majority share.
[20]
[21]
[22]
In 1985, The Rouse Company absorbed all of Connecticut General's interests in the Howard Research and Development subsidiary. In 1986, former general manager of Columbia and executive vice president of development Micheal Spear became president as a successor to Rouse. In 1990, Spear died in a crash with his wife and one daughter in his
Piper PA-31T Cheyenne
attempting a single engine missed approach near
Logan International Airport
.
[23]
[24]
In 1997, Anthony Deering took over as CEO of the company.
[25]
In 1996,
Howard Hughes Corporation
, which had extensive property and other business interests, became a
subsidiary
.
On November 12, 2004, the Rouse Company was sold to General Growth Properties.
[26]
In 2012, General Growth Properties spun off 30 malls into a new real estate investment trust, Rouse Properties.
[27]
Investments
[
edit
]
- Freedom shopping center (1953) - A 308 unit combination apartment complex and shopping center funded by Moss-Rouse.
[28]
[29]
- Mondawmin Mall
(October 1956) -
Baltimore, Maryland
with partner Harry Bart.
- Talbottown (1957) - A Easton shopping center adjacent to the Spring Hill Cemetery where citizens rejected early Alexander Smith Cochran modernist architecture.
[30]
- Harundale Mall
(1958) -
Glen Burnie, MD
. Financed by Connecticut General. First enclosed mall east of the Mississippi River. Closed in 1997, now Harundale Plaza, an outdoor shopping center.
- Cherry Hill Mall
(1961) - Delaware Township, now
Cherry Hill, New Jersey
.
[31]
- Pocantico Hills (1962) - A cancelled "Village" concept for
John D. Rockefeller
's grandchildren.
David Rockefeller
would later finance $10 Million of the Columbia Project.
[32]
- Village of Cross Keys
(1963) - First "planned community" conversion of a golf course to high-rise residential and commercial.
[33]
- Greengate Mall
(1965) -
Greensburg, Pennsylvania
. Closed in 2001, redeveloped as Greengate Centre.
- Planned community (1966) - Howard Research and Development formed to build planned community of Columbia Maryland.
- Salem Mall
(1966) -
Trotwood, Ohio
. Closed in 2005, demolished shortly thereafter.
- Eastfield Mall
(1967) -
Springfield, Massachusetts
- Echelon Mall
(1969) -
Voorhees, New Jersey
. Groundbreaking began to build the Echelon Mall (Now the
Voorhees Town Center
). The mall was opened in 1970.
- Planned community (1969) - Greater Hartford Corporation formed to redevelop Hartford, Connecticut suburbs with Connecticut General funding.
[34]
- Planned community (1970) - Failed project to develop 10,600 acres of
Staten Island
as "New Richmond".
[35]
- The Mall in Columbia
(1971) -
Columbia, Maryland
- Perimeter Mall
(1971) -
Atlanta, Georgia
- Highland Mall
(1971) -
Austin, Texas
. Closed on April 30, 2015.
- Woodbridge Center
(1971) -
Woodbridge Township, New Jersey
- Planned community (1972) - Failed project to develop Wye Island with 706 homes.
[36]
- Planned community (1973) - Failed project to develop 5,000 acres in
Memphis, Tennessee
as Shelby Farms with
First Horizon National Corporation
.
[37]
- Exton Square
(1973) - Square shaped enclosed mall in
Exton, Pennsylvania
- Tampa Bay Center
(1976) - Two level enclosed mall in
Tampa, Florida
. Closed in 2002, demolished in 2005.
- Hulen Mall
(1977) - Two level enclosed mall in
Fort Worth, Texas
- The Gallery at Market East
(1977) -
Philadelphia, Pennsylvania
. Reconstructed from 2016-2019 with the new name
Fashion District Philadelphia
- Harborplace
(1980) - A downtown marketplace built on the
Baltimore Steam Packet Company
docks. Indoor mall closed December 31, 2021.
- White Marsh Mall
- first part of the
White Marsh Town Center
project. Opened in 1981.
- Burlington Center
(1981) -
Burlington Township, New Jersey
. Opened August, 1982. Closed in 2018, demolished in 2021.
- South Street Seaport
(1983) - Festival Marketplace in
Lower Manhattan
,
New York
.
- The Waterside
(June 1983) - Festival Marketplace in
Norfolk, Virginia
.
- Jacksonville Landing
(June 1985) - Festival Marketplace in
Jacksonville, Florida
.
- Sixth Street Marketplace
(September 1985 - 2003) - Festival Marketplace in
Richmond, Virginia
.
- New Orleans Riverwalk
(1986) Festival Marketplace
- Owings Mills Mall
(July 1986) -
Owings Mills, Maryland
. Closed in 2015, demolished in 2016. Now Mill Station, a lifestyle center.
- Westlake Center
(1988) -
Seattle, Washington
.
[38]
- Underground Atlanta
(1989) - Renovation
- The Centre at Salisbury
(1989) -
Salisbury, Maryland
.
- Oviedo Mall
(1997) -
Oviedo, Florida
. The last mall built by Rouse.
References
[
edit
]
- ^
The Baltimore Sun
. 5 April 2008.
- ^
Paul Marx.
Jim Rouse: Capitalist/idealist
. p. 39.
- ^
Joseph Rocco Mitchell, David L. Stebenne.
A New City Upon a Hill
. p. 47.
- ^
Mitchell, Joseph Rocco; Stebenne, David L.
New City Upon a Hill
. p. 94.
- ^
"Columbia's first 25 years: a chronology".
Baltimore Sun
. 14 June 1992.
- ^
Mitchell, Joseph Rocco; Stebenne, David L.
New City Upon a Hill
. p. 66.
- ^
"The Story that Changed a County".
The Times
. 31 March 1965.
- ^
William H Jones (16 August 1975). "Refinancing Completed For Columbia Planner".
The Washington Post
.
- ^
Joshua Olsen.
Better Places, Better Lives
. p. 237.
- ^
Caroline A Mayer (31 May 1985). "Rouse to Buy Out Columbia Partner: To Gain Complete Control Over Future Development of Planned Community".
The Washington Post
.
- ^
Leo Molinaro (1988).
Housing for People with Mental Illness: A Guide for Development
.
- ^
The American City Corporation (January 1971).
Urban Life In New and Renewing Communities
.
- ^
Paul Marx.
Jim Rouse: Capitalist/idealist
. p. 160.
- ^
Burke, Missy; Emrich, Robin; Kellner, Barbara (2008).
Oh, You must live in Columbia
. Columbia, Maryland: Columbia Archives. p. 113.
- ^
"Checklist of Maryland Post Offices"
(PDF)
.
Smithsonian National Postal Museum
. Retrieved
17 May
2014
.
- ^
"Rouse asks his firm to hire more negroes".
The Baltimore Sun
. 2 November 1971.
- ^
"DeVito is new president of the Rouse Company".
The Baltimore Sun
. 9 March 1973.
- ^
Hope Laundauer (9 February 1975). "Quadrupled Rouse Company Cuts Back".
The Baltimore Sun
.
- ^
Ann Forsythe.
Reforming Suburbia, The Planned Communities of Irvine, Columbia, and the Woodlands
. p. 265.
- ^
"Group buys Rouse stock, says it may plan takeover".
The Baltimore Sun
. 24 October 1979.
- ^
"The War of the Schuers".
New York Magazine
: 42. 28 May 1990.
- ^
Miles Wiess (12 March 2009). "Madoff Saps Fortune of Heirs of Wall Street 'King'
".
Bloomberg
.
- ^
"Plane Crash Kills Head Of Firm That Developed Westlake Center".
The Seattle Times
. 25 August 1990.
- ^
"NTSB report NYC90FA199"
. Retrieved
5 February
2014
.
- ^
Kelly, Jacques (November 17, 2017).
"Anthony Deering, led Rouse Company and orchestrated its sale"
.
Baltimore Sun
.
- ^
"General Growth Properties, Inc. Completes Merger of the Rouse Company"
(Press release).
Business Wire
. November 12, 2004.
- ^
Louis, Brian (January 13, 2012).
"General Growth Completes Spinoff of 30 Retail Centers Into Rouse"
.
Bloomberg L.P.
- ^
Joseph Rocco Mitchell, David L. Stebenne.
A New City Upon a Hill
. p. 47.
- ^
House & Home
: 148. May 1953.
- ^
Dickson.
Talbot County
. p. 339.
- ^
Paul Marx.
Jim Rouse: Capitalist idealist
. p. 91.
- ^
Joseph Rocco Mitchell, David L. Stebenne.
A New City Upon a Hill
. p. 53.
- ^
Joseph Rocco Mitchell, David L. Stebenne.
City Upon a Hill
. p. 53.
- ^
"Rouse To Aid Rebuilding City".
The Baltimore Sun
. 8 February 1969.
- ^
Louis P. Peddicord (17 May 1970). "Rouse Proposes 'New City' On Staten Island: Creation Would House 150,000 Families On 10,600 Acres".
The Baltimore Sun
.
- ^
Tom Horton (12 April 1996). "A Rouse failure, an island's gain Saved: Wye Island remains an environmental crown jewel after James Rouse was thwarted in his bid for its limited development".
The Baltimore Sun
.
- ^
"Tennessee new town planned".
The Baltimore Sun
. 8 April 1973.
- ^
Barry Maitland.
The new architecture of the retail mall
. p. 148.
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Malls
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Non-mall properties
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