Owner Of Famed Retailer J&R Music World Chats Career And Transition To Real Estate Development

In terms of real estate and business, Rachelle Friedman is a pioneer in downtown Manhattan. She’s the famed “R” in J&R Music and Computer World, the Fulton Square superstore on Park Row which, being located just a few blocks from the World Trade Center, survived the economic devastation following 9/11 before closing in 2014.

Together with her husband Joe, Friedman opened the electronics retailer originally in one storefront at 23 Park Row in 1971. That same year, while breaking through the business and music industry ceilings, Friedman was also among the first class of female graduates from Brooklyn PolyTech, now the New York University Tandon School of Engineering. (“There were three women in the school when I first went there, and there were no women’s bathrooms,” Friedman recalled. “You had to knock on the door and say, ‘Guys, I have to use the bathroom,’ and then you’d walk in and read all the graffiti they wrote about you.”)

While the Friedmans expanded their store in both directions on the street, they eventually bought buildings 15 through 31 on Park Row, and are now converting them into luxury residences. These include the historic 15 Park Row, which they’re turning into rentals, along with 25 Park Row, a brand-new, 50-story condo co-developed by L+M Partners and designed by COOKFOX architects.

I chatted with Friedman about her experience as a businesswoman in New York City and her adjustment to real estate development:

Heather Senison: How did you come to own so much real estate?

Rachelle Friedman: My husband and I opened up J&R on Park Row in 1971 and it started as a 500-square-foot store where we sold radio and televisions. It was very near to the school I went to, PolyTech, and where Joe was working as an electrical engineer. And we expanded and started selling records, cameras, musical instruments, and anytime a store became available on the block we rented it. And after a few years we decided to buy each site so we wouldn’t have to worry about rent hikes from landlords and competitors forcing us out. Eventually we became the first electronics superstore and encompassed 10 storefronts along Park Row.

HS: Why did you decide to close J&R to switch to real estate development?

RF: We’ve always been in the real estate business. We were purchasing sites and expanding our business over the years. We owned 15 Park Row, which was the tallest residential building in 1896. And because of our love of the neighborhood and our investment in it, we wanted to be involved in its future. So when we closed J&R in 2014, we were extremely sad but we knew what would come next would be truly remarkable.

HS: New Yorkers tend to get upset when beloved neighborhood businesses close. Did you experience backlash for closing J&R, and how did you overcome it emotionally?

RF: Honestly, we didn’t get backlash. First of all, it was beyond sad, it was heartbreaking. It was something that my husband and I created when we first got married. It was almost like our third child. We didn’t want to close but circumstances change. People saw how much we put into the block and J&R and the neighborhood after 9/11 – we didn’t close, we didn’t flee, we didn’t fire any people even though we were closed months, and we opened prematurely just so we could revive the area. Honestly, we got a lot of love and understanding that we had to close because the business did change. We knew we wanted to stay in the neighborhood and we wanted to continue the J&R legacy so we decided, instead of selling the property, that we would build something that was right for the neighborhood.

HS: You have a history of breaking glass ceilings – first at PolyTech and then being a woman in the music industry, in business and in real estate. Based on what you’ve learned over the years, what advice would you give female professionals in these fields?

RF: When I was in college, it was very male-dominated at the time, and I think women are still in the minority at PolyTech. The music business was very male-dominated and the electronics business was very male-dominated, and so is real estate. So has it changed? Yes and no. I advise women to compete using your brain, there we’re all equal, but you should excel using your compassion. We’re all equally smart, I don’t think it makes a difference if you’re a man or woman, but a woman has compassion and sees things differently. It’s not just a numbers game, it [requires] empathy for what other people would want. In the real estate business when you have that feeling, “what do people want?” I think there we do have the advantage.

HS: What challenges do we still face?

RF: I think there are challenges because we’re perceived a little bit differently, but we have to be strong. Hold your head up high and definitely believe in yourself. Do not compromise on those beliefs. Be sure that you’re passionate about your idea and if you really are and you think it’s the right thing to do, go for it and do whatever you have to to get it done.

HS: Is real estate development a big change from retail?

RF: There are so many similarities and I’ve always felt empowered and supported by a great team so we were able to work with the team at J&R for many years and now we can use our great relationship with them. You really have to learn how to take advantage of all the good that is around you. We surrounded ourselves with incredible partners and we had great expertise. So for 25 Park Row, we’re co developers. We bring extensive knowledge of the site that nobody else has because we know the best place to watch the sunset, why balconies should face a certain direction. We knew our customers, that there are a lot of tourists and office workers in the area.

HS: What has been your biggest obstacle?

RF: I think financing, during the times it’s changed a little bit. The rules and different formulas changed so that was a little more difficult than I envisioned. There really weren’t problems though because it was done and planned very, very well.

HS: Is there anything you want to tell readers about your new development, 25 Park Row?

RF: When people used to come to my office on the fourth floor in J&R [at 23 Park Row], I have all this beautiful memorabilia, but the first thing they used to do is go to the window and say, “Oh my god the view. How do you get something like that in Manhattan?” So having realized how special this view is, we worked with the architect and we got a lot of outdoor space. It’s just spectacular. And we have so many windows in the apartments, windows on three sides so you get sweeping views of the Hudson River and the Brooklyn Bridge and The Woolworth Building. I’m just so excited about 25 Park Row. I think what we created is a New York City icon.

This post first appeared on Forbes.com. To see the original, click here.