Behind every billionaire there is a story!

Zell Sees Commercial Real Estate Investment Resurging

Billionaire Sam Zell said institutional investors are beginning to return to the market for mortgage- backed securities that finance commercial real estate deals and new construction.“I believe the overall market has already started to ease,” Zell, chairman of Equity Residential, the largest U.S. apartment owner, said in an interview in New York. “Is it in large volumes? No. Is it the first natural step in the evolution? Yes.”

For the first time since July, when credit markets froze in reaction to rising home-loan defaults, investors are starting to move their money from Treasury bonds, whose returns are below the inflation rate, and into commercial mortgage-backed securities. Insurance companies and pension funds need to earn at least 6 percent to cover their liabilities, Zell said

read the rest published by Bloomberg here:

http://www.bloomberg.com/apps/news?pid=20601213&sid=axayr3YarWO0&refer=home