Key Takeaways
- • Blackstone acquired a 49,401-square-foot retail and office building at 125 Worth Avenue in Palm Beach from Ken Griffin's Citadel for $86 million, representing a $3 million gain on Griffin's $83 million purchase price in 2023.
- • The property houses premium tenants including Truist Bank and yacht brokerage Ferretti Group on ground-floor retail space, anchoring one of North America's highest-performing luxury retail markets.
- • Palm Beach's Worth Avenue retail corridor demonstrates exceptional fundamentals with sub-1% vacancy rates and the highest rents in the county at approximately $92 per square foot, outpacing broader Palm Beach County retail at 3.6% vacancy and $39 per square foot.
- • The transaction follows a broader wave of institutional capital deployment on Worth Avenue in 2026, including the Reuben Brothers and Crown Onyx Investments' $200 million acquisition of Esplanade 150 and Acadia Realty Trust's $43 million purchase of 225 Worth Avenue.
- • Palm Beach County retail fundamentals remain robust, with nearly 370,000 square feet under construction and tenant absorption exceeding 230,000 square feet year-to-date, while average rents have increased 7 percent year-over-year.
Summary
Blackstone, the world's largest landlord by assets under management, has agreed to purchase 125 Worth Avenue in Palm Beach from Ken Griffin's Citadel for $86 million. The transaction represents a modest capital appreciation for Griffin, who acquired the three-story, 52-year-old property in 2023 for $83 million according to property records. The 49,401-square-foot mixed-use building combines retail and office space on one of South Florida's most exclusive shopping corridors.
The property's tenant roster reflects its premium positioning within the luxury market. Ground-floor retail space is occupied by Truist Bank and Ferretti Group, an international yacht brokerage, anchoring the building within Worth Avenue's ecosystem of high-end boutiques including Chanel, Louis Vuitton, and Ferragamo. Blackstone Real Estate principal Elena Clarfield emphasized the strategic rationale in a statement, noting that "high-street retail continues to experience strong fundamentals, and Palm Beach represents one of the highest performing luxury retail markets in North America."
Worth Avenue's retail performance substantially outpaces broader market conditions. The corridor maintains a vacancy rate below 1 percent with average rents near $92 per square foot—the highest in Palm Beach County—according to Cushman & Wakefield analysis. By comparison, retail vacancy across Palm Beach County sits at 3.6 percent with average rents near $39 per square foot, up 7 percent year-over-year. Market absorption data supports continued strength, with retailers having absorbed more than 230,000 square feet of space in 2026 against nearly 370,000 square feet under construction.
The Blackstone acquisition reflects broader institutional capital deployment targeting Worth Avenue. In March 2026, Reuben Brothers and Crown Onyx Investments acquired the 128,000-square-foot Esplanade 150 for $200 million, while Acadia Realty Trust separately purchased a 10,000-square-foot building at 225 Worth Avenue for $43 million. Griffin's disposition of the Worth Avenue asset follows his earlier $80 million sale of a neighboring property to TZ Capital in 2025 and occurs concurrent with his firm's completion of an entire Miami block acquisition for a planned $2.5 billion headquarters facility.
The property's tenant roster reflects its premium positioning within the luxury market. Ground-floor retail space is occupied by Truist Bank and Ferretti Group, an international yacht brokerage, anchoring the building within Worth Avenue's ecosystem of high-end boutiques including Chanel, Louis Vuitton, and Ferragamo. Blackstone Real Estate principal Elena Clarfield emphasized the strategic rationale in a statement, noting that "high-street retail continues to experience strong fundamentals, and Palm Beach represents one of the highest performing luxury retail markets in North America."
Worth Avenue's retail performance substantially outpaces broader market conditions. The corridor maintains a vacancy rate below 1 percent with average rents near $92 per square foot—the highest in Palm Beach County—according to Cushman & Wakefield analysis. By comparison, retail vacancy across Palm Beach County sits at 3.6 percent with average rents near $39 per square foot, up 7 percent year-over-year. Market absorption data supports continued strength, with retailers having absorbed more than 230,000 square feet of space in 2026 against nearly 370,000 square feet under construction.
The Blackstone acquisition reflects broader institutional capital deployment targeting Worth Avenue. In March 2026, Reuben Brothers and Crown Onyx Investments acquired the 128,000-square-foot Esplanade 150 for $200 million, while Acadia Realty Trust separately purchased a 10,000-square-foot building at 225 Worth Avenue for $43 million. Griffin's disposition of the Worth Avenue asset follows his earlier $80 million sale of a neighboring property to TZ Capital in 2025 and occurs concurrent with his firm's completion of an entire Miami block acquisition for a planned $2.5 billion headquarters facility.
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