Ken Griffin behind $83M buy of Worth Ave. building that stirred controversy in Palm Beach

A company with a Miami address matching that of hedge-fund billionaire Ken Griffin's Citadel investments headquarters has paid a recorded $83 million for a Palm Beach retail-and-office building at 125 Worth Ave.

The building stands next door to the old Neiman Marcus department-store building, which a different Griffin-linked company bought vacant in May 2022. The buyer of 125 Worth Ave. was listed on the deed as a Delaware limited liability company named 125 Worth LLC. Business records show that company is managed by Gerald A. Beeson, who is chief operating officer of Citadel.

A spokesman for Griffin confirmed Citadel did not buy the two buildings. Griffin instead bought both personally, said the spokesman, who declined further comment.

The building was sold by a Florida limited liability company named 125 Worth Partners, a company managed by an entity whose parent company company is Dreyfuss Investments, the deed shows.

Dreyfuss Investments was a partner with Palm Beach-based developer Frisbie Group in the ownership of the building. The deed that sold the building was signed by J.R. Schuble as manager of Dreyfuss Investments. He also is president of the real estate company Dreyfuss Management in Bethesda, Md.

Representatives of Frisbie Group generated controversy earlier this year when they presented to town officials plans — since withdrawn — to renovate and expand the building that just sold.

Griffin owns the hedge fund Citadel and Citadel Securities, formerly of Chicago. He also owns the largest estate in Palm Beach, where he is building an oceanfront house for his mother.

The deed for the Worth Avenue sale lists the buying entity with a Miami address in Suite 3300 at Southeast Financial Center, 200 S. Biscayne Blvd. That address is the headquarters of Griffin's Citadel financial empire.

The Palm Beach Daily News on Friday was the first media outlet to report the sale of the Worth Avenue building.

Robert Frisbie Jr., a project manager at Frisbie Group, said early Friday afternoon he couldn’t comment.

With the addition of the building at 125 Worth Ave. to his real estate holdings, Griffin-controlled companies now own about 1.8 acres in the ocean block of the Avenue. He paid a combined $161 million for his two properties on the street.

FROM THE ARCHIVES: Frisbie Group withdraws controversial plan for Worth Avenue office building

The building at 125 Worth Ave. last changed hands for a recorded $30.7 million in 2017. It stands at the east end of the Avenue on the north side of the street, which is known worldwide for its luxury retail stores.

Completed in 1974, the 50,017-square-foot building has offices above ground-floor storefronts as well as an underground parking garage.

Renovation plans for Worth Avenue commercial building hit snags

In April, after more than a year of planning, representatives of the Frisbie Group withdrew their renovation plans for the building. The project would have overhauled the exterior, expanded the leasable space and enlarged a rooftop structure that houses mechanical equipment on the roof.

Some residents strenuously opposed the project, citing concerns about the building’s height and fearing a restaurant might open there. Frisbie said in April the company did not want to move forward with any plans for a renovation without the full support of the community.

FROM THE ARCHIVES: Frisbie Group pays $30.7 million for retail-and-office building at 125 Worth Ave.

The withdrawal of the project also followed Town Attorney John Randolph’s decision to change his opinion about whether the renovation would be permitted under the rules governing the number of stories allowed in the easternmost block of Worth Avenue.

Citing town documents from the early 1970s, Randolph said the building has four stories rather than three, as town planning-and-zoning officials had previously maintained. The renovation project to expand the building’s “mechanical penthouse” for any other use on the top floor, Randolph said, would violate Worth Avenue zoning rules.

The renovation-and-expansion plans had won the support of many of the building’s neighbors, although other town residents, including some at the Kirkland House condominium immediately to the north, objected to the proposal.

Frisbie Group owned the Palm Beach buildings through an ownership entity

The building’s ground-floor storefronts are home to Truist Bank and Truist Wealth, as well as Provident Fine Art and the Ferretti Group yacht showroom and sales center. In addition, the building houses at least 20 other tenants, including William Raveis South Florida Real Estate and Premier Estate Properties.

When the building last sold in October 2017, the seller was a company controlled by Crocker Partners, courthouse records show. The building stands across the street from The Esplanade, a shopping plaza anchored by Saks Fifth Avenue and filled with luxury shops and businesses.

Griffin bought the former Neiman Marcus building at 151 Worth Ave. in May 2022 for a recorded $78 million through a Delaware company named 151 Worth LLC. The billionaire has said he plans to open a satellite office of his Miami-based Citadel financial empire in the old department store building.

Griffin spokesman Zia Ahmed on Friday declined to comment when asked about plans for the building at 151 Worth Ave. The building has sat empty since Neiman Marcus closed in September 2020.

Frisbie Group involved in residential, commercial investments in Palm Beach

The Frisbie Group has developed and sold luxury homes in Palm Beach. It also developed the Via Flagler by The Breakers mixed-use project on Royal Poinciana Way, where members of the Frisbie family own four condominiums. The company also built and sold four oceanfront townhouses in the 400 block of South Ocean Boulevard.

The company’s commercial portfolio in Palm Beach includes retail-and-office buildings immediately east of the Via Flagler by The Breakers development. In early 2021, the company and a minority partner bought five commercial properties in the South County Road district in Midtown Palm Beach. The deal included a bank building at 180 Royal Palm Way; a retail building at 301 S. County Road; and two parking lots and a vacant lot on nearby Brazilian Avenue.

The Frisbie Group's founders and principals include three brothers — David, Rick and Robert Frisbie Sr. The list of founding principals also includes Suzanne Frisbie, David Frisbie's wife and a real estate agent with the Corcoran group. Several other second-generation members of the Frisbie family hold management roles in the company.

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This story was updated July 17, 2023 — the day the deed recorded for the sale of 125 Worth Ave. in Palm Beach — to add information about the buyer and seller. This is a developing story. Check back for updates.

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Darrell Hofheinz is a USA TODAY Network of Florida journalist who writes about Palm Beach real estate in his weekly “Beyond the Hedges” column. He welcomes tips about real estate news on the island. Email dhofheinz@pbdailynews.com, call 561-820-3831 or tweet @PBDN_Hofheinz. Help support our journalism. Subscribe today.

This article originally appeared on Palm Beach Daily News: Billionaire Ken Griffin buys building that caused dissent in Palm Beach