Caveat Emptor! Caution! Sucker! In the aftermath of the Equity Office bid, people are starting to ask, “Is it a good idea to buy from Sam Zell?” That’s a good question and one with many answers- “No”, “Yes”, “Maybe”, “Depends.” Sam Zell is a fantastic investor in real estate and he made his money from buying low, managing assets expertly and selling high. Now he’s cashing some of that in by selling EOP and suddenly people are wondering whether we should feel sorry for the buyer? I get a kick out of the simultaneous absurdity. On one hand, commentators are asking whether this single event is proof of a top in REIT valuations and on the other, they are glamorizing the brilliance of private equity. Let’s remember who bought from Zell - Blackstone did and they do not make a habit of losing money. Investors are pumping up the private equity funds, the money is put to work, and then at some point in the future, we see an IPO. When EOP or some other restructured entity of its former self comes public, will we be cheering the opening day appreciation or will we be saying “Caveat Emptor” and “is it a good idea to buy from Blackstone?”  Don’t feel sorry for Blackstone about them overpaying for anything.  If they bought high, they’ll do what a lot of great investors do, they’ll sell higher.