Sam Zell, chairman at Equity Group Investments, spoke with Stephanie Ruhle and David Westin on Bloomberg TV's "Bloomberg <GO>." He discussed the expected Federal Reserve rate hike, the risk of a near-term recession, and investor flexibility provided by low-interest.
Zell said: "I think that this interest rate hike is probably 6 or 8 months too late. I think that the economy is closer to falling over than it is to going up."
He added: "I think that there's a high probability that we're looking at a recession in the next 12 months."
Zell confirmed Airbnb approached Equity Residential about using their apartments: "[Airbnb] for sure has approached EQR and they've had some conversations. I don't think that the overall scale of Airbnb is going to change the multifamily business. It might create, particularly in certain situations, scenarios where maybe a rental project is much better suited to be used as a semi-hotel in an Airbnb situation."
Zell: Fed rate hike is 6-8 months too late
Courtesy of Bloomberg <GO>'s Stephanie Ruhle and David Westin
Zell: U.S. at risk of recession in next 12 months
Courtesy of Bloomberg <GO>'s Stephanie Ruhle and David Westin
Zell: Airbnb has approached us
Courtesy of Bloomberg <GO>'s Stephanie Ruhle and David Westin
Zell: I don't buy anything without an edge
Courtesy of Bloomberg <GO>'s Stephanie Ruhle and David Westin
Zell: I'm not a big buyer of real estate today
Courtesy of Bloomberg <GO>'s Stephanie Ruhle and David Westin
Zell on investing in distressed energy assets
Courtesy of Bloomberg <GO>'s Stephanie Ruhle and David Westin
Zell: Hard not to be seller in real estate market
Courtesy of Bloomberg <GO>'s Stephanie Ruhle and David Westin
Full interview transcript available upon request.
