Sam Zell, the billionaire property mogul is about to exert his forces on delinquent commercial asset backed mortgage holders. Zell is looking to purchase bad loans secured on commercial real estate for literally cents on the dollar. The fund, with a capitalization of around $615m will take over the loans, then negotiate an equity stake or possible repossession if the owners cannot make their payments.
This could be a mammoth task, as analyzing these deals may not be that easy, as there has been a huge drop in commercial values therfore assets could still be difficult to price accurately. There are currently a number of so called "vulture funds" looking to pick up under valued property assets.