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Barrack Says Real Estate in ‘Chaos’ as Laws Waived on Rent, Debt

  • Veteran investor says lenders, landlords have no recourse
  • Colony Capital is encouraging borrowers to tap government aid
A pedestrian walks along an empty street in the SoHo neighborhood of New York on April 11.

A pedestrian walks along an empty street in the SoHo neighborhood of New York on April 11.

Photographer: George Etheredge/Bloomberg

Tom Barrack said the U.S. property market is in “chaos” and still on the verge of collapse because the federal government and local authorities are allowing renters and homeowners to skip payments because of the coronavirus.

“We haven’t had a crisis like this,” Barrack, chief executive officer of Colony Capital Inc., said in an interview Friday on Bloomberg Television. “We’ve never had one where we just have a government taking of revenue.”