It’s great to be back after several days away from Investorazzi.com. However, I expected a little bit more from my “leads” than a story about pop star Michael Jackson and his Neverland Ranch. Nevertheless, I decided to address this because legendary real estate investor Tom Barrack, Jr., somehow got involved with a last-minute deal to save the 49-year-old American entertainer’s property in Santa Barbara, California, from foreclosure. Barrack is famous for calling the top of the U.S real estate market in 2005.

E!Online’s Gina Serpe wrote this morning:

The seemingly perpetually indebted Michael Jackson narrowly escaped a foreclosure auction on his Neverland Ranch Sunday after the real-estate investment firm Colony Capital bought the loan to the property in a last-minute deal to save the estate.

The purchase of the 2,700-acre ranch was said to have set Colony back $23.5 million, and the company has wasted no time getting into discussions about possible repayment terms with the onetime king of pop, with founder Tom Barrack Jr. saying they were already speaking “with regard to the ranch and other matters.”

“Blame it on Tito”

Barrack’s Colony Capital, one of the largest private-equity firms devoted solely to real estate, has achieved a 24% annualized internal rate of return (IRR) over the last 17 years.

Source:

“Neverland Saved From Auction Block”
Gina Serpe
E!Online, May 12, 2008

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