Billionaire Ken Griffin parting with Faena House penthouses in Miami Beach at a loss

Griffin paid $60M for both units in 2015

Ken Griffin with Faena House at at 3315 Collins Avenue (Photos via Getty; Google Maps)
Ken Griffin with Faena House at at 3315 Collins Avenue (Photos via Getty; Google Maps)

Billionaire hedge fund manager Ken Griffin is bidding adieu to the ultra luxury Faena House in Miami Beach.

Griffin sold his larger penthouse for $35 million and is in contract to sell his second penthouse, which is on the market for $12.5 million, according to the Multiple Listing Service. He paid $60 million for both units in 2015. At the time, the sale was considered a record for residential real estate in South Florida, but both units were never combined.

Even if Griffin, the founder and CEO of his Chicago-based hedge fund Citadel, sold the second penthouse at asking price, he would still sell the units at a loss of at least $12.5 million.

Oren Alexander of Douglas Elliman represented the buyer and seller of the larger unit, a four-bedroom, 7,433-square-foot condo. Ryan Mendell of Maxwell E. Realty is representing Griffin in the sale of penthouse B, a three-bedroom, 4,243-square-foot unit.

Alexander declined to comment on the deal. Mendell could not immediately be reached for comment.

The 44-unit Faena House at 3315 Collins Avenue, was developed by Alan Faena and investor Len Blavatnik.

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In September, the condo association sued the developer, general contractor and subcontractors for a laundry list of alleged construction defects at the 17-story building, including a broken elevator in the penthouse, missing art, cracking in the concrete and chalky paint.

Some owners at Faena House, including Griffin, also have opposed the planned development of a 250-foot tall tower next door, to be developed by developer Vlad Doronin and investor Blavatnik.

Griffin, a Daytona Beach native, has been assembling land in both Palm Beach and Miami Beach where he’s planning to build multimillion-dollar waterfront mansions. His Chicago-based Citadel Securities began operating a temporary trading room in Palm Beach at the start of the pandemic.

On Miami Beach’s Star Island, Griffin has likely spent about $95 million on four waterfront lots, most recently shelling out $25 million for 10 Star Island Drive.

On the island of Palm Beach, Griffin has paid more than $350 million for land.

He owns some of the most expensive residential properties around the world, including in Manhattan, Chicago and London. In 2019, he closed on a $240 million apartment at New York City’s 220 Central Park South, breaking the record for the most expensive residential transaction recorded in the U.S.