Blackstone Real Estate has acquired billionaire Ken Griffin's last remaining retail property on Worth Avenue in Palm Beach, Florida. As Commercial Observer has learnt, Blackstone Real Estate has agreed to take over the three-storey office and retail building at 125 Worth Avenue for US$86 million. The transaction, which took place in August 2026, was conducted as an all-cash deal.
Griffin had acquired the approximately 50,000 square foot property in 2023 for US$83 million from Dreyfuss Management and the Frisbie Group. Elena Clarfield, Principal at Blackstone Real Estate, emphasised to Commercial Observer that high-street retail continues to show strong fundamentals and Palm Beach is among the top-performing luxury retail markets in North America.
Strategic Investments in Luxury Locations
The globally renowned Worth Avenue is characterised as a retail corridor of extreme scarcity, while simultaneously experiencing high demand due to the influx of numerous wealthy residents into Palm Beach. The limited supply has also driven up property valuations in this prestigious area. Evidence of this is the acquisition of 225 Worth Avenue, leased to Gucci, by Acadia Realty Trust in March 2026 for US$43 million, equivalent to over US$4,329 per square foot.
Blackstone did not comment further on the plans, but sources suggest the company intends to renovate the property. Both the retail and office spaces are to be modernised to adapt them to the continuous development of Worth Avenue. This prime shopping district hosts various luxury tenants such as Chanel, Louis Vuitton, Ferragamo and Van Cleef & Arpels.
Griffin's Property Deals and Blackstone's Global Strategy
This transaction represents Griffin's second divestment on Worth Avenue within a year. In November of the previous year, the billionaire sold his 48,578 square foot property at 151 Worth Avenue to the family of financier Steven Tananbaum of GoldenTree Asset Management. The latest sale also comes a few months after construction began on Griffin's 54-storey office skyscraper in Miami's Brickell District. For the 1.7 million square foot project, led by Related Companies, Griffin's companies, hedge fund Citadel and market maker Citadel Securities, will relocate their headquarters.
For Blackstone, the acquisition in Palm Beach is consistent with the company's global high-street retail strategy. In August 2024, Blackstone acquired a 31,000 square foot retail space at 130-134 New Bond Street in London for £230 million. In November 2024, the company took over four retail properties from ASB Capital Management in New York's SoHo district for US$200 million. Also in 2024, according to CoStar, Blackstone acquired two luxury boutiques on Rue Saint-Honoré in Paris for €148 million.
