Zell action may stick HUD; Reserve Sq. foreclosure could cost feds $19MM. (Samuel Zell; Department of Housing and Urban Development; Reserve Square building)

Crain's Cleveland Business, May, 1993 by Thompson, Chris

Sam Zell, the self-proclaimed grave dancer, is dancing on his own grave at Reserve Square and he wants to do it at the taxpayers' expense. Mr. Zell, a Chicago investor in distressed real estate and troubled corporations, controls a partnership that's foreclosing on the owner of the Reserve Square office, apartment and Radisson Hotel complex at 1701 E.

12th St. The property's owner is Park Central Associates, a separate partnership controlled by Mr. Zell. He calls himself the grave dancer because of his success at buying and rejuvenating properties and businesses other investors thought were dead. In this case, the investor destined to be buried is the U.S. Department of Housing and Urban Development, which is owed $19.2 million by Park Central Associates. A note...

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