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We Study Billionaires - The Investor’s Podcast Network

TIP552: Mastering the Art of Investing: A Deep Dive w/ Sam Zell

May 14, 2023
In this insightful discussion, legendary real estate investor Sam Zell shares his journey in pioneering the REIT industry and emphasizes the importance of market awareness. At 81, his relentless drive to succeed continues to inspire. Zell delves into the complexities of negotiating high-stakes sales, like his record-breaking $40 billion transaction with Blackstone. He also offers his perspective on current interest rates, advocating for further hikes, and highlights the crucial interplay between liquidity and value in investment decisions.
01:06:21

Episode guests

David Greene
Sam Zell

Podcast summary created with Snipd AI

Quick takeaways

  • Creating competition among buyers and increasing the breakup fee can lead to successful acquisitions.
  • Understanding supply and demand dynamics, long-term thinking, and focus on cash flow and liquidity are crucial in real estate investing.

Deep dives

The Acquisition of Equity Office Properties

Sam Zell walks through the acquisition of Equity Office Properties and how the deal unfolded. He explains his strategy of creating competition among buyers and increasing the breakup fee to discourage competing bids. The ultimate sale to Blackstone for $39 billion was a significant success for both parties, with Blackstone able to liquidate two-thirds of the portfolio at prices above what they paid for the entire company.

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