Contrarian Zell Disses Crash Claims
(Nov. 11, 2009) Ever the contrarian investor/thinker, Sam Zell told a group of real estate investors on Tuesday that talk of any impending commercial real estate crash are decidedly wide of the mark. Such claims are “greatly exaggerated,” said Zell.
The billionaire Chicago investor poked fun at the notion that investors such as himself were lining up to buy distressed assets by the boatload. “Everyone is waiting for the grave dancer to come and exercise his magic potion, but you need two to tango.”
Zell’s remarks came at the “Invest For Kids” conference in downtown Chicago, which showcased presentations by major investment managers, with the proceeds from the event benefitting local children’s charities. Individual tickets to the inaugural event cost $1,000 each.
According to Zell, even after months of precipitous value declines, property owners are still not in the mood to sell their assets at bargain basement prices. The same cannot be said of hotels, however.
Zell raised eyebrows recently by raising $625 million in a new fund to buy what he termed “credit opportunities.”
