"The opportunity of acquiring real estate in its current distress offers the greatest single economic opportunity for investors in our time, one that is not likely to occur again."
Sam Zell
The Grave Dancer, 1976
By the mid-1990s, Sam Zell had established a reputation as "the grave dancer" and was raising capital for his fourth distressed investing vehicle. According to these documents buried in an 30-year-old IC packet, he thought it continued to be an opportunity of a lifetime.
Three questions...
1. Was it truly an opportunity of a lifetime for Zell?
2. How did his funds perform?
3. Are we in a similar time now with office assets? Must of the commentary could be re-applied to current conditions. (see below)
"…the intrinsic value of brick and mortar in place, well-designed and well-maintained, will grow substantially. The slower rate of new construction, expansion, and development will force an increase in the rentals and sales prices of all forms of real estate."
Read the full report here.
COMMENTS