Sam Zell

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Samuel Zell
Born (1941-09-28) September 28, 1941 (age 73)
Chicago, Illinois
Ethnicity Jewish
Alma mater B.A. University of Michigan
J.D. University of Michigan Law School
Occupation Chairman of Equity Group Investments
Net worth Steady US$4.9 billion (March 2015)[1]
Spouse(s) Spouse1 (divorced)
Spouse2 (divorced)
Helen Zell
Children three
Parent(s) Rochelle Zielonka
Berek Zielonka

Samuel "Sam" Zell (born September 27, 1941)[2] is an American business magnate. He is chairman of Equity Group Investments (EGI), the private investment firm he founded in the 1960s. The majority of his investment portfolio ranges across industries such as energy, logistics, communications and transportation, but he is often best known for his pioneering role and stewardship in creating the modern commercial real estate industry. EGI’s holdings also include fixed-income investments in public and private companies.

Zell is also the founder and chairman of Equity International, a private investment firm focused on building real estate-related businesses in international emerging markets. 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 in the U.S.; Equity LifeStyle Properties (ELS), a real estate investment trust that owns and operates manufactured home and resort communities; Equity Commonwealth (EQC) a leading office REIT; Covanta Holding Corp. (CVA), an international owner/operator of energy-from-waste and power generation facilities; and Anixter (AXE), a leading global provider of communications, security, and wire and cable products.

Early life and education[edit]

Zell was born in Chicago in 1941 to Rochelle and Berek Zielonka, Jewish immigrant parents from Poland who immigrated to America before the German invasion in 1939.[3] Shortly after moving from Seattle to Chicago, Berek Zielonka (later known as Bernard) changed the family name to Zell.[4] Zell graduated from Highland Park High School in Highland Park, Illinois. In 1963, he graduated with a BA from the University of Michigan, where he was a member of the Alpha Epsilon Pi fraternity. In 1966, he graduated with a JD from the University of Michigan Law School.[5]


Zell founded Equity Group Investments in 1967 and was joined two years later by partner Bob Lurie Robert H. Lurie Together, they went on to grow the small firm into a vast enterprise, until Lurie's death in 1990. EGI Equity Group Investments was the genesis for three of the largest public real estate companies in history, including: Equity Residential, the largest apartment owner in the United States; Equity Office Properties Trust, the largest office owner in the country; and Equity Lifestyle, an owner/operator of manufactured home and resort communities. With their entry onto the public markets in the 1990s, Zell became recognized as a founding father of the modern real estate industry. In addition, Zell has created a number of public and private companies in various other industries.

In 2007 the Blackstone Group completed its purchase of Zell's Equity Office Properties Trust for $39 billion,[6] which was the largest LBO in history at the time. Blackstone sold off many of the portfolio's properties for record amounts.[7] By early 2009 most of the properties sold were "under water" (worth less than the mortgage).[7]


Either by himself or with partners, Zell owned the Schwinn Bicycle Company,[8] the drugstore Revco,[9] department store chain Broadway Stores,[10] energy company Santa Fe Energy Resources[11] and mattress company Sealy.[12]

In 1985, Zell took over Itel Corporation.[13]

Media investments[edit]

Between 1992 and 1999, Zell's Chillmark fund owned Jacor Communications, Inc., a successful radio broadcast group that included a television station. The company was sold to Clear Channel Communications in 1999.[14]

On April 2, 2007, the Tribune Company announced its acceptance of Zell's offer to sponsor the going-private transaction of Chicago Tribune, the Los Angeles Times, and the company's other media assets. On December 20, 2007, Zell took the company private, and the following day he became the Chairman and CEO. He sold the Chicago Cubs and the company's 25 percent interest in Comcast SportsNet Chicago. Under the burden of the debt incurred as part of Zell's leveraged buyout and in context of the unexpected severity of the Great Recession, the Tribune Co. filed for chapter 11 bankruptcy reorganization in December 2008.[15]

Los Angeles Times[edit]

In a sharply critical June 2008 opinion piece for The Washington Post 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.[16]

Zell is known for using "salty" language in the newsroom.[17] 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."[18]


Zell and his wife, Helen, are active philanthropists who focus heavily on education and the arts. Among their public beneficiaries are: - University of Michigan with the sponsorship of the Zell/Lurie Institute for Entrepreneurial Studies and the Master of Fine Arts Creative Writing Program - Northwest University's Kellogg School Zell Center for Risk Research and Zell's Scholor Program - University of Pennsylvania Wharton School's Zell/Lurie Real Estate Center - Ounce of Prevention - Museum of Contemporary Art - Chicago Symphony

Zell, according to The Forward,[19] is also "a major donor to causes in Israel. 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."


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[20][21] 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.[22]

Zell's company Equity LifeStyle Properties, a leading owner/operator of manufactured home and resort communities, has been criticized by tenants and their representatives for working to eliminate rent-control laws in local municipalities so that they can bring rents on their properties up to market-level rates. The company characterizes rent controls as "private subsidies for mobile-home dwellers", saying in 2007 that its annual subsidy to California tenants was $15 million.[23]

Personal life[edit]

Zell has been married three times and divorced twice; he has three children.[24]


  1. ^ Forbes: "The World's Billionaires - Sam Zell January 2015
  2. ^ [1]
  3. ^ Raphael, Marc (2008). The Columbia history of Jews and Judaism in America. Columbia. p. 237. 
  4. ^ Katharine Q. Seelye, Terry Pristin (March 25, 2007). "Sam Zell, the 'grave dancer', sees profit in newspapers". International Herald Tribune. Retrieved April 3, 2007. 
  5. ^ "Billionaire Investor Sam Zell at Glance". Associated Press. September 21, 2006. Retrieved April 4, 2007. [dead link]
  6. ^ Wilson, David (February 8, 2007). "Blackstone's Costly Buyout, Navistar's Listing". Bloomberg. Retrieved April 5, 2007. 
  7. ^ a b Charles V. Bagli (February 6, 2009). "Sam Zell’s Empire, Underwater in a Big Way". The New York Times. 
  8. ^ Judith Crown (May 12, 1997). "ZELL & CO. PEDDLING SCHWINN". Crain's Chicago Business. 
  9. ^ "COMPANY NEWS; Chairman of Revco Is Dismissed by Board". The New York Times. June 5, 1992. 
  10. ^ GEORGE WHITE and STUART SILVERSTEIN (August 15, 1995). "Federated Stores to Buy Broadway in $373-Million Deal". Los Angeles Times. 
  11. ^ William Gruber (January 11, 1993). "Pritzker Clan, Zell On Investment Roll". Chicago Tribune. 
  12. ^ Stanley Ziemba (January 22, 1997). "Zell's Sealy Sells Furniture Unit". Chicago Tribune. 
  13. ^ "Sam Zell — "Going for Greatness"". Graham & Doddsville (XIV): 27. Retrieved 2014-02-06. 
  14. ^ Alejandro Bodipo-Memba (October 9, 1998). "Clear Channel Wins Bidding Contest, Agrees to Buy Jacor Communications". Wall Street Journal. 
  15. ^ Shira Ovide (December 9, 2008). "Tribune Co. Files for Chapter 11 Protection". Wall Street Journal. 
  16. ^ Harold Meyerson, "The L.A. Times's Human Wrecking Ball", Washington Post, June 11, 2008
  17. ^ Los Angeles Times staffers warned about behaving like Zell
  18. ^ Let Sam be Sam, but you be nice
  19. ^ Nathaniel Popper, "Billionaire Boychiks Battle for Media Empire: ‘Committed Zionist’ To Buy Papers With Troubled Ties to Community", The Forward, April 13, 2007
  20. ^ Bialik, Carl (February 29, 2008). "Cubs Fans Consider a Wrigley by Any Other Name". The Wall Street Journal. 
  21. ^ Wojciechowski, Gene (March 2, 2008). "Cubs' new owner should think again about renaming Wrigley". ESPN. 
  22. ^ Dodd, Mike (March 1, 2008). "For Cubs fans, renaming Wrigley is dealbreaker". USA Today. 
  23. ^ Mulligan, Thomas S. (April 2, 2007). "A Zell-led firm's fight with small tenants". Loa Angeles Times. Retrieved March 27, 2012. 
  24. ^ Forbes: "The 400 Richest Americans: Sam Zell" September 21, 2006

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