Samuel Zell
Encyclopedia
Samuel "Sam" Zell is a U.S. business magnate
. He is Chairman of Equity Group Investments, L.L.C. (EGI), a private, entrepreneurial investment firm he founded more than 40 years ago. EGI's investments span industries and continents, and include interests in real estate, energy, logistics, transportation, media, and health care.
Zell is also co-founder and Chairman of Equity International, a private investment firm that focuses on real estate-related companies outside of the U.S. In addition, Zell maintains substantial interests in, and is the Chairman of, a number of public companies listed on the New York Stock Exchange, including: Equity Residential (EQR), the largest apartment REIT; Equity LifeStyle Properties (ELS), a real estate investment trust
that owns and operates manufactured home communities; Covanta Holding Corp. (CVA), an international leader in converting waste to energy; and Anixter (AXE), a value-add provider of integrated networking and cabling solutions that support business information and network infrastructure requirements. Zell is also the chairman of Tribune Company, a private media conglomerate.
parents from Poland
who fled the country just before the German invasion in 1939. Shortly after moving from Seattle to Chicago
, Berek Zielonka (later known as Bernard) changed the family name to Zell. He received his BA
(1963) from the University of Michigan
, where he was a member of the Alpha Epsilon Pi
fraternity. He also received his JD
(1966) from the University of Michigan Law School
.
went on to found the Equity Group Investments, LLC
, which spawned three real estate public companies, including: Equity Residential
, the largest apartment owner in the United States
; Equity Office Properties, the largest office owner in the country; and Equity Lifestyle, a mobile home company. In addition, Zell has created a number of public and private companies. He also controls SZ Investments LLC as his investment arm.
Zell is also Chairman of Capital Trust
Inc., a finance and investment management company focused on the commercial real estate industry, and Anixter International
, the world's largest distributor of communication products and electrical and electronic wire and cable.
In 2007 the Blackstone Group
completed its purchase of Zell's Equity Office Properties Trust for $39 billion,
and sold off many of the portfolio's properties for record amounts. By early 2009 most of the properties sold were "under water" (worth less than the mortgage).
, the drugstore Revco
, department store chain Broadway Stores, energy company Santa Fe Energy Resources and mattress company Sealy
.
, a successful radio broadcast group that included a television station. The company was sold to Clear Channel Communications
in 1999.
On April 2, 2007, the Tribune Company
announced its acceptance of Zell's offer to buy the Chicago Tribune
, the Los Angeles Times
, and other media assets. On December 20, 2007, Zell took the company private, and the following day he became the Chairman and CEO. He plans to sell the Chicago Cubs
, and sell the company's 25 percent interest in Comcast SportsNet
Chicago. Under the burden of the debt incurred as part of Zell's leveraged buyout
, the Tribune Co. filed for chapter 11 bankruptcy reorganization in December 2008.
entitled, "The L.A. Times' Human Wrecking Ball", veteran Los Angeles-based editor and columnist Harold Meyerson
took Zell to task for "taking bean counting to a whole new level", asserting that "he's well on his way to... destroying the L.A. Times." Comparing Zell to James McNamara, who was sentenced to life in prison for the notorious 1910 Los Angeles Times bombing
(which killed 21 employees), Meyerson concluded his article by opining that "Life in San Quentin sounds about right" for Zell.
Zell is known for using "salty" language in the newsroom. In February 2008, the website LA Observed reprinted an internal memo that said:
, he helped fund the Real Estate Department at Wharton, as well as the Zell-Lurie Institute at the Ross School of Business
at University of Michigan
. Zell also endowed the Zell Center for Risk Research at the Kellogg School of Management
at Northwestern University
, and the Samuel Zell and Robert Lurie Real Estate Center at the Wharton School. Zell has also donated significantly to his alma mater, the University of Michigan
.
Zell, according to The Forward
, is also "a major donor to causes in the Middle East. His donations include a $3.1 million donation to the Herzliya Interdisciplinary Center in Israel and separate donations to the Israel Center for Social and Economic Progress
, a free market oriented Israeli think tank
founded by Daniel Doron
. In the United States, he has given major gifts to such Jewish causes as the American Jewish Committee
and the Bernard Zell Anshe Emet Day School, a Chicago Jewish primary school named after his father."
against former Illinois Governor Rod Blagojevich
. The charges claimed that Blagojevich had pressured Zell to fire particular Tribune editorial staffers, known to be harshly critical of the governor, in exchange for tax breaks on the sale of Wrigley Field. An aide to Blagojevich reported back to the governor that Zell "got the message and is very sensitive to the issue." The District Attorney's office later concluded that the aide had not in fact approached Zell and was lying to the governor.
In 2008, Zell announced a plan to place the Chicago Cubs
and Wrigley Field
up for sale separately in order to maximize profits. He also announced he would consider selling naming rights to Wrigley Field. These announcements were widely unpopular in Chicago and a poll taken by the Chicago Sun-Times
showed that 53% of 2,000 people who voted said they would no longer attend Cubs games if the field was renamed.
In April 2008, Zell made a controversial comment about the subprime mortgage crisis
at a conference in Los Angeles, where he stated, "This country needs a cleansing. We need to clean out all those people who never should have bought in the first place, and not give them sympathy."
. In April 2007, Zell completed a leveraged buyout
of the Tribune Company
, publisher of the Chicago Tribune
and the Los Angeles Times
.
Business magnate
A business magnate, sometimes referred to as a capitalist, czar, mogul, tycoon, baron, oligarch, or industrialist, is an informal term used to refer to an entrepreneur who has reached prominence and derived a notable amount of wealth from a particular industry .-Etymology:The word magnate itself...
. He is Chairman of Equity Group Investments, L.L.C. (EGI), a private, entrepreneurial investment firm he founded more than 40 years ago. EGI's investments span industries and continents, and include interests in real estate, energy, logistics, transportation, media, and health care.
Zell is also co-founder and Chairman of Equity International, a private investment firm that focuses on real estate-related companies outside of the U.S. In addition, Zell maintains substantial interests in, and is the Chairman of, a number of public companies listed on the New York Stock Exchange, including: Equity Residential (EQR), the largest apartment REIT; Equity LifeStyle Properties (ELS), a real estate investment trust
Real estate investment trust
A real estate investment trust or REIT is a tax designation for a corporate entity investing in real estate. The purpose of this designation is to reduce or eliminate corporate tax. In return, REITs are required to distribute 90% of their taxable income into the hands of investors...
that owns and operates manufactured home communities; Covanta Holding Corp. (CVA), an international leader in converting waste to energy; and Anixter (AXE), a value-add provider of integrated networking and cabling solutions that support business information and network infrastructure requirements. Zell is also the chairman of Tribune Company, a private media conglomerate.
Early life
Zell was born in Chicago in 1941 to Rochelle and Berek Zielonka, Jewish immigrantImmigration to the United States
Immigration to the United States has been a major source of population growth and cultural change throughout much of the history of the United States. The economic, social, and political aspects of immigration have caused controversy regarding ethnicity, economic benefits, jobs for non-immigrants,...
parents from Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
who fled the country just before the German invasion in 1939. Shortly after moving from Seattle to Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
, Berek Zielonka (later known as Bernard) changed the family name to Zell. He received his BA
Bachelor of Arts
A Bachelor of Arts , from the Latin artium baccalaureus, is a bachelor's degree awarded for an undergraduate course or program in either the liberal arts, the sciences, or both...
(1963) from the University of Michigan
University of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
, where he was a member of the Alpha Epsilon Pi
Alpha Epsilon Pi
Alpha Epsilon Pi , the Global Jewish college fraternity, has 155 active chapters in the United States, Canada, United Kingdom and Israel with a membership of over 9,000 undergraduates...
fraternity. He also received his JD
Juris Doctor
Juris Doctor is a professional doctorate and first professional graduate degree in law.The degree was first awarded by Harvard University in the United States in the late 19th century and was created as a modern version of the old European doctor of law degree Juris Doctor (see etymology and...
(1966) from the University of Michigan Law School
University of Michigan Law School
The University of Michigan Law School is the law school of the University of Michigan, in Ann Arbor. Founded in 1859, the school has an enrollment of about 1,200 students, most of whom are seeking Juris Doctor or Master of Laws degrees, although the school also offers a Doctor of Juridical...
.
Real estate business
Zell, with Robert H. LurieAnn & Robert H. Lurie
Robert H. Lurie graduated from University of Michigan with a BSE in Industrial and Operations Engineering in 1964 and a MSE in 1966. While studying at the University of Michigan, he and Sam Zell began a real-estate management company, which expanded into two large apartment and office property...
went on to found the Equity Group Investments, LLC
Equity International
Equity International is a private equity firm chaired by Sam Zell....
, which spawned three real estate public companies, including: Equity Residential
Equity Residential
Equity Residential is a member of the S&P 500, a publicly-traded real estate investment trust based in Chicago, IL. The company owns or has an interest in more than 550 apartment communities in 23 states and the District of Columbia...
, the largest apartment owner in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
; Equity Office Properties, the largest office owner in the country; and Equity Lifestyle, a mobile home company. In addition, Zell has created a number of public and private companies. He also controls SZ Investments LLC as his investment arm.
Zell is also Chairman of Capital Trust
Capital Trust
Capital Trust, Inc. is a finance and investment management company focused on the commercial real estate industry. Capital Trust's professionals combine extensive real estate experience and capital markets expertise with a broad network of relationships to originate, underwrite, structure, close...
Inc., a finance and investment management company focused on the commercial real estate industry, and Anixter International
Anixter International
Anixter International is a Fortune 500 company based in Glenview, Illinois, USA and founded in 1957. Anixter is a leading global supplier of communications and security products, electrical and electronic wire and cable, fasteners and other small components. Anixter has physical presence in 52...
, the world's largest distributor of communication products and electrical and electronic wire and cable.
In 2007 the Blackstone Group
Blackstone Group
The Blackstone Group L.P. is an American-based alternative asset management and financial services company that specializes in private equity, real estate, and credit and marketable alternative investment strategies, as well as financial advisory services, such as mergers and acquisitions ,...
completed its purchase of Zell's Equity Office Properties Trust for $39 billion,
and sold off many of the portfolio's properties for record amounts. By early 2009 most of the properties sold were "under water" (worth less than the mortgage).
Investments
Either by himself or with partners, Zell owned the Schwinn Bicycle CompanySchwinn Bicycle Company
The Schwinn Bicycle Company was founded by German-born mechanical engineer Ignaz Schwinn in Chicago in 1895. It became the dominant manufacturer of American bicycles through most of the 20th century and today it is a sub-brand of Pacific Cycle, owned by the multi-national conglomerate, Dorel...
, the drugstore Revco
Revco
Revco Discount Drug Stores , once based in Twinsburg, Ohio, was a major drug store chain operating through the Ohio Valley, the Mid-Atlantic states, and the Southeastern United States. The chain's stock was traded on the New York Stock Exchange under the ticker RXR...
, department store chain Broadway Stores, energy company Santa Fe Energy Resources and mattress company Sealy
Sealy Corporation
Sealy Corporation is an American owned major manufacturer of mattresses, based in Trinity, North Carolina, in the United States. The company draws its name from the city where it started, Sealy, Texas.- History :...
.
Media investments
Between 1992 and 1999, Zell's Chillmark fund owned Jacor Communications, Inc.Jacor
Jacor Communications was a media corporation which owned a large number of radio stations in the United States. Inside the radio industry, Jacor was seen as one of the most competitive broadcast companies in history. Jacor's re-image in 1996 created the slogan "The Noise You Can't Ignore".Jacor was...
, a successful radio broadcast group that included a television station. The company was sold to Clear Channel Communications
Clear Channel Communications
Clear Channel Communications, Inc. is an American media conglomerate company headquartered in San Antonio, Texas. It was founded in 1972 by Lowry Mays and Red McCombs, and was taken private by Bain Capital LLC and Thomas H. Lee Partners LP in a leveraged buyout in 2008...
in 1999.
On April 2, 2007, the Tribune Company
Tribune Company
The Tribune Company is a large American multimedia corporation based in Chicago, Illinois. It is the nation's second-largest newspaper publisher, with ten daily newspapers and commuter tabloids including Chicago Tribune, Los Angeles Times, Hartford Courant, Orlando Sentinel, South Florida...
announced its acceptance of Zell's offer to buy the Chicago Tribune
Chicago Tribune
The Chicago Tribune is a major daily newspaper based in Chicago, Illinois, and the flagship publication of the Tribune Company. Formerly self-styled as the "World's Greatest Newspaper" , it remains the most read daily newspaper of the Chicago metropolitan area and the Great Lakes region and is...
, the Los Angeles Times
Los Angeles Times
The Los Angeles Times is a daily newspaper published in Los Angeles, California, since 1881. It was the second-largest metropolitan newspaper in circulation in the United States in 2008 and the fourth most widely distributed newspaper in the country....
, and other media assets. On December 20, 2007, Zell took the company private, and the following day he became the Chairman and CEO. He plans to sell the Chicago Cubs
Chicago Cubs
The Chicago Cubs are a professional baseball team located in Chicago, Illinois. They are members of the Central Division of Major League Baseball's National League. They are one of two Major League clubs based in Chicago . The Cubs are also one of the two remaining charter members of the National...
, and sell the company's 25 percent interest in Comcast SportsNet
Comcast SportsNet
Comcast SportsNet is a group of regional sports networks in the United States primarily owned by the Comcast cable television company....
Chicago. Under the burden of the debt incurred as part of Zell's leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
, the Tribune Co. filed for chapter 11 bankruptcy reorganization in December 2008.
Los Angeles Times
In a sharply critical June 2008 opinion piece for The Washington PostThe Washington Post
The Washington Post is Washington, D.C.'s largest newspaper and its oldest still-existing paper, founded in 1877. Located in the capital of the United States, The Post has a particular emphasis on national politics. D.C., Maryland, and Virginia editions are printed for daily circulation...
entitled, "The L.A. Times' Human Wrecking Ball", veteran Los Angeles-based editor and columnist Harold Meyerson
Harold Meyerson
Harold Meyerson is an American journalist and opinion columnist. In 2009 The Atlantic Monthly named him one of "the most influential commentators in the nation" as part of their list "The Atlantic 50."...
took Zell to task for "taking bean counting to a whole new level", asserting that "he's well on his way to... destroying the L.A. Times." Comparing Zell to James McNamara, who was sentenced to life in prison for the notorious 1910 Los Angeles Times bombing
Los Angeles Times bombing
The Los Angeles Times bombing was the purposeful dynamiting of the Los Angeles Times building in Los Angeles, California, on October 1, 1910 by a union member belonging to the International Association of Bridge and Structural Iron Workers. The explosion started a fire which killed 21 newspaper...
(which killed 21 employees), Meyerson concluded his article by opining that "Life in San Quentin sounds about right" for Zell.
Zell is known for using "salty" language in the newsroom. In February 2008, the website LA Observed reprinted an internal memo that said:
"Last week you may have encountered some colorful uses of the lexicon from Sam Zell that we are not used to hearing at the Times... But of course we still have the same expectations at the Times of what is correct in the workplace. It's not good judgment to use profane or hostile language and we can't tolerate that... In short, nothing changes; the fundamental rules of decorum and decency apply... Sam is a force of a nature; the rest of us are bound by the normal conventions of society."
Philanthropy
A long-time supporter of the Wharton School of the University of PennsylvaniaWharton School of the University of Pennsylvania
The Wharton School is the business school of the University of Pennsylvania, an Ivy League university in Philadelphia, Pennsylvania. Wharton was the world’s first collegiate business school and the first business school in the United States...
, he helped fund the Real Estate Department at Wharton, as well as the Zell-Lurie Institute at the Ross School of Business
Ross School of Business
The Stephen M. Ross School of Business is the business school of the University of Michigan. Numerous publications have ranked the Ross School of Business' Bachelor of Business Administration , Master of Business Administration and Executive Education programs among the top in the country and the...
at University of Michigan
University of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
. Zell also endowed the Zell Center for Risk Research at the Kellogg School of Management
Kellogg School of Management
The Kellogg School of Management is the business school of Northwestern University in Evanston, Illinois, downtown Chicago, Illinois and Miami, Florida. Kellogg offers full-time, part-time, and executive programs, as well as partnering programs with schools in China, India, Hong Kong, Israel,...
at Northwestern University
Northwestern University
Northwestern University is a private research university in Evanston and Chicago, Illinois, USA. Northwestern has eleven undergraduate, graduate, and professional schools offering 124 undergraduate degrees and 145 graduate and professional degrees....
, and the Samuel Zell and Robert Lurie Real Estate Center at the Wharton School. Zell has also donated significantly to his alma mater, the University of Michigan
University of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
.
Zell, according to The Forward
The Forward
The Forward , commonly known as The Jewish Daily Forward, is a Jewish-American newspaper published in New York City. The publication began in 1897 as a Yiddish-language daily issued by dissidents from the Socialist Labor Party of Daniel DeLeon...
, is also "a major donor to causes in the Middle East. His donations include a $3.1 million donation to the Herzliya Interdisciplinary Center in Israel and separate donations to the Israel Center for Social and Economic Progress
Israel Center for Social and Economic Progress
The Israel Center for Social and Economic Progress is an independent pro-market public policy thinktank founded in 1983 by Daniel Doron to promote basic structural reform in Israel's economy. Its British Friends include members of the Jewish-British community such as Gerald Ronson and Barry Townsley...
, a free market oriented Israeli think tank
Think tank
A think tank is an organization that conducts research and engages in advocacy in areas such as social policy, political strategy, economics, military, and technology issues. Most think tanks are non-profit organizations, which some countries such as the United States and Canada provide with tax...
founded by Daniel Doron
Daniel Doron
Daniel Doron is an Israeli publicist and political activist. He is the founder and director of the Israel Center for Social and Economic Progress . In this capacity, he has recommended economic changes to the Israeli government, some of which have successfully been implemented...
. In the United States, he has given major gifts to such Jewish causes as the American Jewish Committee
American Jewish Committee
The American Jewish Committee was "founded in 1906 with the aim of rallying all sections of American Jewry to defend the rights of Jews all over the world...
and the Bernard Zell Anshe Emet Day School, a Chicago Jewish primary school named after his father."
Controversies
Zell was implicated in the corruption chargesRod Blagojevich corruption charges
Rod Blagojevich, former Governor of Illinois, is an American politician under investigation by the Federal Bureau of Investigation since 2005 for corruption. Blagojevich and his Chief of Staff John Harris were charged with corruption by federal prosecutor Patrick Fitzgerald...
against former Illinois Governor Rod Blagojevich
Rod Blagojevich
Rod R. Blagojevich is an American politician who served as the 40th Governor of Illinois from 2003 to 2009. A Democrat, Blagojevich was a State Representative before being elected to the United States House of Representatives representing parts of Chicago...
. The charges claimed that Blagojevich had pressured Zell to fire particular Tribune editorial staffers, known to be harshly critical of the governor, in exchange for tax breaks on the sale of Wrigley Field. An aide to Blagojevich reported back to the governor that Zell "got the message and is very sensitive to the issue." The District Attorney's office later concluded that the aide had not in fact approached Zell and was lying to the governor.
In 2008, Zell announced a plan to place the Chicago Cubs
Chicago Cubs
The Chicago Cubs are a professional baseball team located in Chicago, Illinois. They are members of the Central Division of Major League Baseball's National League. They are one of two Major League clubs based in Chicago . The Cubs are also one of the two remaining charter members of the National...
and Wrigley Field
Wrigley Field
Wrigley Field is a baseball stadium in Chicago, Illinois, United States that has served as the home ballpark of the Chicago Cubs since 1916. It was built in 1914 as Weeghman Park for the Chicago Federal League baseball team, the Chicago Whales...
up for sale separately in order to maximize profits. He also announced he would consider selling naming rights to Wrigley Field. These announcements were widely unpopular in Chicago and a poll taken by the Chicago Sun-Times
Chicago Sun-Times
The Chicago Sun-Times is an American daily newspaper published in Chicago, Illinois. It is the flagship paper of the Sun-Times Media Group.-History:The Chicago Sun-Times is the oldest continuously published daily newspaper in the city...
showed that 53% of 2,000 people who voted said they would no longer attend Cubs games if the field was renamed.
In April 2008, Zell made a controversial comment about the subprime mortgage crisis
Subprime mortgage crisis
The U.S. subprime mortgage crisis was one of the first indicators of the late-2000s financial crisis, characterized by a rise in subprime mortgage delinquencies and foreclosures, and the resulting decline of securities backed by said mortgages....
at a conference in Los Angeles, where he stated, "This country needs a cleansing. We need to clean out all those people who never should have bought in the first place, and not give them sympathy."
Wealth
With an estimated net worth of US $5 billion, he is ranked as the 63rd richest American by ForbesForbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
. In April 2007, Zell completed a leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
of the Tribune Company
Tribune Company
The Tribune Company is a large American multimedia corporation based in Chicago, Illinois. It is the nation's second-largest newspaper publisher, with ten daily newspapers and commuter tabloids including Chicago Tribune, Los Angeles Times, Hartford Courant, Orlando Sentinel, South Florida...
, publisher of the Chicago Tribune
Chicago Tribune
The Chicago Tribune is a major daily newspaper based in Chicago, Illinois, and the flagship publication of the Tribune Company. Formerly self-styled as the "World's Greatest Newspaper" , it remains the most read daily newspaper of the Chicago metropolitan area and the Great Lakes region and is...
and the Los Angeles Times
Los Angeles Times
The Los Angeles Times is a daily newspaper published in Los Angeles, California, since 1881. It was the second-largest metropolitan newspaper in circulation in the United States in 2008 and the fourth most widely distributed newspaper in the country....
.
External links
- Profile at Equity InternationalEquity InternationalEquity International is a private equity firm chaired by Sam Zell....
- Equity Group Investments
- Profile at ForbesForbesForbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
- The Zell Center for Risk Research at the Kellogg School of ManagementKellogg School of ManagementThe Kellogg School of Management is the business school of Northwestern University in Evanston, Illinois, downtown Chicago, Illinois and Miami, Florida. Kellogg offers full-time, part-time, and executive programs, as well as partnering programs with schools in China, India, Hong Kong, Israel,...
- The Zell Lurie Institute at the The University of Michigan
- The Samuel Zell and Robert Lurie Real Estate Center at Wharton School of the University of PennsylvaniaWharton School of the University of PennsylvaniaThe Wharton School is the business school of the University of Pennsylvania, an Ivy League university in Philadelphia, Pennsylvania. Wharton was the world’s first collegiate business school and the first business school in the United States...
- The Zell entrepreneurship program at the Interdisciplinary Center in Israel
- Zell's federal campaign contributions at Newsmeat
- Zell's Year End Gift
- "What the Zell?" Chronicles one of the most-quotable men in journalism