Warner Bros. CEO David Zaslav’s $80 million bid to acquire Mohawk Day Camp, where his adult children attended, was unsuccessful as hedge funds made higher offers.
Zaslav initially offered $68 million for the camp, one of approximately 30 properties belonging to the bankrupt "summer camp kings" Michael and David Shabsels. His offer was later increased to $80 million in an effort to preserve it as a "family tie" and acknowledge its history as a summer experience for many children, including his own.
However, several entities, including real estate hedge funds, submitted higher bids, with one reportedly offering close to $100 million for the camp.
Sources indicate that hedge funds such as Rubric Capital and Sam Drazin of Drazin Capital are acquiring multiple camps from the Shabsels’ portfolio. Principals from these funds reportedly established American Youth Camping to bid on at least five properties. Among these, American Youth Camping acquired Camp Echo for $14.6 million and North Star for $5.4 million. Drazin also bid $8.7 million for Camp Windsor Mountain. The Shabsels’ Camp Mesorah attracted a bid of $6 million from nursing homes mogul Daryl Hagler.
Concerns exist within the camp community that outside investors, particularly hedge funds, may prioritize acquiring the land over continuing the long-standing operations of these generational camps. Some investors allegedly claim to seek silent partnerships but may intend to alter the camps' established natures.