Chicago Tribune from Chicago, Illinois • 46

10 Section 4 CWcaqo Tribune; Monday. February 8 987 Xerox cash will help AW Cr.3fcfi', 457,100 cq. ft. fcsffiiy cn 70 cwcz. Mm wi4MV I'm'm ftwMl hr-mm II BINSWANGER MIDWEST II CMooipPtaa.CNaoabLaoe9l3123-7770 bad philWnhia PA Mm Vhrk NY Altanla OA ftanuar CO 1 1 DMM, TX UXM, MO CMtTOK, Ml 01X301 I II I Rdaii, NC Wtrntan GMrn, NC Oftfubore, NC I II I Columbia, 8C Oriando, FL Oxfcxd, MS UJLJ UndonBnaaliFiinldUrtRoMdMAnaMdml COMMERCIAL INDUSTRIAL REAL ESTATE Magnificent Mile network for its own products, Stone said: "We weren't looking to add retail outlets." He said the companies' intent "is not necessarily to.

combine" their networks of brokerages, financial planners, banks and insurance companies. With such advisers as the real estate accountancy of Kenneth Leventhal VMS is exploring new territory including unleveraged and low-leverage real estate acquisitions: advisory capacities for pension funds and offshore investors; and, most, visibly as far as the general public is concerned, direct development of commercial real estate. In downtown Chicago, for ex- ample, VMS is a partner with Fifield Development Corp. in a 30-story office, retail and hotel tower proposed for 676 N. Michigan Ave.

The building, which would replace the F.W. Woohvorth Co. store, is expected to be begun late this year and finished in 1989. In New -York, VMS is a partner with Big Apple developer Ian Bruce Eichner in a $300 million office tower at 46th Street and Broadway on Times Square. Both projects are candidates for limited partnerships VMS may sponsor.

ft" TRIBUNE TOWER 435 N.MICHIGAN. 5fcs; that a newly created financial, services unit, XCC Investment had invested $80 million in VMS and extended $120 million in loans to acquire a 25 percent stake in the company. "It's always an anxious moment when you're bringing in a new partner," Stone said. Xerox acquired Van Kampen Merritt a Lisle-based underwriter and distributor of municipal and corporate bonds and mutual funds, in 1984 from a group that included VMS principal Robert D. Van Kampen.

Van kampen continues as chairman of Van Kampen Mer-' ritt and as a VMS partner. VMS' third principal is Peter R. Morris, chairman. "We also were looking not for just dollars, but. someone who would add, though it's an overused term, the synergy of a company with the financial strengths and connections of Xerox," Stone said.

Stone cited Xerox's other financial service entities, the Crura and Forster Inc. property-casualty insurance holding company and the Xerox Credit Corp. equipment and lease financing concern. Putting to rest speculation that VMS brought in Xerox to tap the latter's national sales Washburn said getting a better settlement for the policyholders was part of his motivation. But having the guaranty association live up to its responsibilities and proving that state officials had the right to force that was an even bigger issue.

Rather than taking the issue to court, the guaranty fund agreed to kick in the additional $1 million without admitting it was obliged to do so. Illinois officials agreed to the settlement in the interest of time. "If we had pursued it beyond this point, it's very likely that payments to Illinois policyholders would have been held up because of the additional litigation," Enoex said. William Courtney, chairman of the guaranty fund, agreed that avoiding further litigation was the key. "The $1 million was a fair settlement.

It cut the costs and got the issue' behind us," he said. But the key issue whether Washburn and Hartigan have legal authority to force the guaranty fund to ante up more remains unresolved. "I think there was an honest dispute over interpretation of what the guaranty fund covers," Courtney said. "Director Wash-bum and Gen. Hartigan took the position that the guaranty fund might owe people more than the enhancement pjan might allow them to col- About half the extra $1 million will repay the hidden cost of the "interest" payments to By David Ibata a recent, $200 million A infusion from Xerox Corp.

comes at an op-h portune time for VMS JL. 1 Realty Partners which is seeking to diversify from its traditional base of tax-shelter investments. "We were known to the public as a tax-oriented firm, and a nice percentage of our business was so said Joel A. Stone, president of the Chicago-based VMS, "but we saw tax -reform coming two years ago and changed our emphasis to nontax oriented vehicles." Since then, VMS has done "approximately $500 minion" in income-oriented limited partnerships and real estate "invest-, ment trusts that invested in commercial, mortgages. Stone said in a telephone interview.

"It's a lot easier to acquire product when you don't have to" worry about the tax needs" of shelter-driven investors. Stone said. On the other hand, he added, "it's more difficult in that the market has to be educated that there is life after tax shelter and that investors should look to the quality of real estate investments and not just the tax-saving attributes." Xerox announced Thursday Annuity Continued from page 3 try, plus cash from guaranty funds. That money is supposed to make up the difference between 5.5 percent and the minimum interest that was guaranteed. But that interest will be computed only on' the balance in the annuity account; any money lost through "interest" menu on funds the policyholder withdrew would not be made UP.

"The guaranty fund did not take into account this hidden charge to policyholders, but we thought they should have," Enoex said. National Investors Life policyholder Dolores Napoli filed suit, seeking restitution from the Illinois Insurance Guaranty Fund for this lost cash. The case became a class action representing all 2,186 Illinois policyholders. Napoli's attorneys' signaled last April they were willing to sign an out-of-court agreement with the guaranty fund. In an unusual move, Hartigan and Washburn stepped in, declaring the settlement to be too low, and refused to sign the deal "One of the major thrusts we have here in the attorney general's office is consumer advocacy," Hartigan said.

"You could have 2,186 consumers who would simply be sitting there with a loss of $1 million. Why should they?" OFFICE SPACE AVAILABLE Spring 1987 Suites From 1,000 to 8,000 Sq. Ft For details call 222-3983 or 222-3995 Don't Purchaco or Lcaso Your Moxt Copier-RENT IT FROIYI COPIER WORLD SPECIAL: Rent the Toshiba ED 5620 and we will include Absolutely Frea the use of an Olympia Electronic Typewriter! Automatic and Semt-Automatic Document Feecfing! Push-Button Tvko-CoJoc ChromaTooch'" Copying! ZOOM, Auto-Calc. Reduction Enlargement! 22 Copies par Mtnutel Plus optional 1.500-Sheet Urga Capacity Feeder. 20-Btn Sorter, and 25-Bln Sortari Rent from Copier World and get one monthly Invoice at an affordable rate with no hidden cost or aurprise rmmmtm WORLD policyholders who withdrew part of their investments, Enoex said.

The rest will be distributed pro rata to all National Investors Life policyholders. "A Met replacement policy or cash won't be received before November of 1987," Enoex noted. built into the rehabilitation plan. But they'll have to make the decision well before that time." Regulators and Met will notify each policyholder, probably within the next month, of the specifics of the enhancement plan, including how much money is in their account and what alternatives are available. It may be November, however, before the exact retroactive interest will be known for certain.

That's when University Life and National Investors Life officially die and all assets are distributed to policyholders. Money contributed by broker-dealers, the insurance industry and guaranty funds continues to accumulate interest, so it's impossible to peg the final amount of cash that will be distributed to policyholders until the last minute, the Met's Latrenta said. Baldwin-United's collapse is the biggest insolvency the life insurance industry ever has faced, and it's kept regulators, insurance executives and attorneys busy ever since. "I think I'll be around long enough for the end to be Enoex said hopefully. Latrenta added, "Hopefully the policyholders will live happily ever after when it's all finished." COPIER 454S N.

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