Key Takeaways
- • Blackstone acquires 125 Worth Avenue in Palm Beach from Ken Griffin for $86 million, a Class A office and retail building spanning approximately 50,000 square feet that Griffin purchased just three years prior in 2023 for $83 million.
- • The sale generates a marginal loss on a per-square-foot basis, working out to $1,720 per square foot compared to Griffin's 2023 acquisition price, suggesting a strategic exit rather than value appreciation over the three-year holding period.
- • Griffin continues divesting Palm Beach commercial real estate, having sold the neighboring former Neiman Marcus building at 151 Worth Avenue to TZ Capital Management for $80.5 million less than a year earlier (acquired in 2022 for $78 million).
- • Blackstone's Revantage platform leads the acquisition, leveraging its corporate services division established in 2017 to manage real estate portfolios; Revantage currently supports 12,700+ real estate assets with combined enterprise value exceeding $500 billion.
- • The 52-year-old building, constructed in 1974 and situated on 0.8 acres, houses tenants including Linda A. Gary Real Estate, Hydra Wellness, and independent real estate agents, positioned on Palm Beach's premium Worth Avenue corridor.
Summary
Ken Griffin, founder of hedge fund Citadel, has sold the office and retail building at 125 Worth Avenue in Palm Beach to Blackstone Real Estate for $86 million. The transaction represents an exit from a property Griffin acquired in 2023 for $83 million from affiliates of Palm Beach-based Frisbie Group and Bethesda-based Dreyfuss Management. The sale price translates to approximately $1,720 per square foot for the 49,401- to 50,000-square-foot Class A asset.
The three-story building, originally constructed in 1974 and situated on 0.8 acres, currently hosts a mix of commercial tenants including Linda A. Gary Real Estate, Hydra Wellness, and independent real estate agents. The property represents one of Griffin's continued commercial real estate dispositions in the Palm Beach market. Less than a year prior, Griffin sold the neighboring former Neiman Marcus building at 151 Worth Avenue to West Palm Beach-based TZ Capital Management for $80.5 million—a property he had owned since 2022, when he purchased it for $78 million. Frisbie Group had originally acquired 125 Worth Avenue in 2017 for $30.7 million, highlighting significant appreciation in the Palm Beach commercial market over the subsequent years.
Blackstone's acquisition is being executed through Revantage, the firm's in-house corporate services and real estate management platform launched in 2017. Revantage currently oversees a portfolio of more than 12,700 real estate assets with a combined enterprise value exceeding $500 billion, positioning it as a significant institutional operator in the commercial real estate sector. Griffin's pattern of acquiring and disposing of premium Palm Beach commercial properties within three-year holding periods, combined with his substantial residential real estate investments across multiple markets, reflects a broader strategic focus on limited-supply, high-value assets rather than long-term operational management.
The three-story building, originally constructed in 1974 and situated on 0.8 acres, currently hosts a mix of commercial tenants including Linda A. Gary Real Estate, Hydra Wellness, and independent real estate agents. The property represents one of Griffin's continued commercial real estate dispositions in the Palm Beach market. Less than a year prior, Griffin sold the neighboring former Neiman Marcus building at 151 Worth Avenue to West Palm Beach-based TZ Capital Management for $80.5 million—a property he had owned since 2022, when he purchased it for $78 million. Frisbie Group had originally acquired 125 Worth Avenue in 2017 for $30.7 million, highlighting significant appreciation in the Palm Beach commercial market over the subsequent years.
Blackstone's acquisition is being executed through Revantage, the firm's in-house corporate services and real estate management platform launched in 2017. Revantage currently oversees a portfolio of more than 12,700 real estate assets with a combined enterprise value exceeding $500 billion, positioning it as a significant institutional operator in the commercial real estate sector. Griffin's pattern of acquiring and disposing of premium Palm Beach commercial properties within three-year holding periods, combined with his substantial residential real estate investments across multiple markets, reflects a broader strategic focus on limited-supply, high-value assets rather than long-term operational management.
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