Fourteen professionals with Chicago-based real estate manager LaSalle Advisors Ltd. were terminated or reassigned last month because of declining revenue and a restructuring.
The reductions were evenly distributed between client relations, portfolio management and acquisitions, said Lynn Thurber, co-head of LaSalle Advisors.
Ms. Thurber confirmed that costs associated with the 1994 merger with Alex. Brown Kleinwort Benson Realty Advisors, declining fees and new business initiatives have caused a reduction in the firm's revenues.
LaSalle Advisors has been profitable, Ms Thurber said, though she declined to say if the profitability has declined.
As part of its strategic shift, LaSalle Advisors' portfolio managers also will have client relationship duties. The marketing department had handled client relations.
"Clients felt strongly that they wanted the person that reported to them to be responsible for their portfolio," said Ms. Thurber.
Ms. Thurber declined to identify the people who left the company.
But knowledgeable industry sources said the departees included: Christopher Burke, senior vice president for marketing; Charles Flint, senior vice president for retail acquisitions; Victoria Sharpe, portfolio manager for the troubled LaSalle Fund IV group trust; and Kevin Bedell, portfolio manager for LaSalle Street Fund, an equally troubled fund.
Hugh Reams, senior vice president for marketing, is said to have left the firm before the changes, and former LaSalle Advisors President Ken Campia is now on indefinite sabbatical.