It’s not just Wall Street firms that are moving to South Florida — their executives are migrating to the Sunshine State, too.
Three top executives at Elliott Management have listed their New York City residences, the Wall Street Journal reported, after the firm announced it would move its headquarters to West Palm Beach.
Paul Singer, the activist investor who helms the firm, listed his apartment in the Beresford on the Upper West Side for $40 million in September 2020. The company’s co-CEO, Jonathan Pollock, listed two Upper West Side apartments for a total of $25 million, while Jesse Cohn, a partner at the firm who heads its U.S. activism practice, listed a condo in the Financial District for $39.5 million.
The shift of Wall Street preferences toward states with lower income taxes, such as Texas and Florida, began long before the pandemic, but has intensified in its wake. In February, Scott Shleifer paid more than $120 million for an oceanfront mansion in Palm Beach — a record for Florida, and one of the most expensive home sales recorded in the U.S.
The trend has come to the fore again as states like New York consider raising taxes on the wealthy to combat a historic budget shortfall as a result of the pandemic.
Some New York City-based real estate agents, however, dismiss the idea that the city will lose its tax base to states like Florida. While older investors may prefer to live there, younger investors will replace them once the pandemic-related restrictions ease.
“What’s there to do in Florida? It’s great if you’re a golfer or you want to play tennis, but it’s a cultural wasteland,” said Donna Olshan, a real estate agent who publishes a weekly report on the luxury market. “How many times can you go in and out of the vias on Worth Avenue and shop? It’s pretty, but it’s not interesting.”
[WSJ] — Georgia Kromrei