Haagen Steps Down in Deal With Lazard

Alexander Haagen, who was one of the most active builders of shopping centers in Southern California, on Monday stepped down as chairman and chief executive of Alexander Haagen Properties Inc. as part of a deal that could net the Haagen family at least $67.2 million.

Company officials also said the firm will probably put up for sale two large shopping malls--Baldwin Hills Crenshaw Plaza in Los Angeles and Media City Center in Burbank--as part of a plan to focus on smaller, community shopping centers.

Industry analysts said Haagen’s resignation was expected in the wake of last summer’s decision to sell nearly 40% of the company to investment banking firm Lazard Freres & Co. for $235 million. Haagen’s wife and son also stepped down from their posts at the Manhattan Beach-based company. Charlotte Haagen resigned as vice president and Alexander Haagen III resigned as vice chairman. Haagen, 77, was named chairman emeritus, and his son will serve as vice chairman emeritus.

Lazard said Monday that it will pay the Haagen family $2.6 million in cash and purchase substantially all of the family’s shares in the company in 18 months. Lazard will buy the Haagens’ 3.8 million shares at the market price, or a minimum of $17 a share. The family will reap at least $64.6 million from the stock sale.

On Monday, Haagen shares were unchanged at $16 on the American Stock Exchange. Buying out the Haagen family will give Lazard control of nearly 50% of Haagen Properties.

“I am proud of what we have accomplished during the last 35 years,” Haagen said in a statement.

Arthur P. Solomon, head of real estate for Lazard Freres, was named interim chairman. Edward D. “Ned” Fox, a Los Angeles real estate executive and former president of Maguire Thomas Partners, will serve as interim president and chief executive officer.