Sam Zell, the real estate mogul known as “the grave dancer”, passed away at the age of 81 due to complications from a recent illness. Zell began his real estate career as a student, buying apartment buildings and turning them around. He had a golden touch that helped him revive ailing properties. His reputation, however, was tainted after he sold the Equity Office office-tower company he had spent three decades building, for a record $39bn in 2007, only to have the media company file for bankruptcy a year later. At the time of his death, Zell was worth an estimated $3.8bn.
Zell’s investment portfolio was diverse, and although real estate was his trademark investment, it constituted only about 25% of his holdings. He invested in mobile-home parks, manufacturing, healthcare, and agriculture, among others. Forbes estimated his net worth at $5.2bn.
Despite his diverse investment portfolio, Zell’s real estate acumen remains his legacy. He was part of a group of real estate executives who turned the distress of the 1990s sector into profitable property empires. In 1997, he combined four investment funds he managed into the biggest publicly-owned office landlord in the US. He later sold the company, Equity Office, to the Blackstone Group in 2007 for a record $39bn, including debt.
During his career, Zell was known for investing in distressed assets and turning them around, earning him the nickname “the grave dancer”. He made a fortune by investing in companies and properties that were in dire straits and revitalizing them.
Zell also dismissed concerns about remote work and its potential long-term impact on the commercial property market. In a conference in New York, he argued that remote work is no substitute for the personal interaction that takes place in an office. He suggested that tech layoffs might indicate that people who work from home are more likely to be laid off than those who work in an office.
Despite Zell’s real estate successes, his tenure at the Tribune Company was a disaster and left a scar on his reputation. After acquiring the media company for $13bn in 2007, the Tribune Company filed for bankruptcy the following year. Zell’s handpicked managers created a culture of offensive banter and innuendo, according to a 2010 New York Times article. Zell’s own comments were also controversial, including his remarks during the #MeToo movement in 2018.
In conclusion, Sam Zell’s legacy as a real estate mogul who revived distressed properties precedes him. He had a golden touch that helped him turn around companies and properties that were in dire straits, earning him the nickname “the grave dancer”. However, his reputation suffered after the Tribune Company bankruptcy, and his comments during the #MeToo movement were controversial. Despite this, Zell’s contributions to the real estate industry will not be forgotten.
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