Investment management behemoth BlackRock is heading to downtown West Palm Beach, marking a continuation of New York financial firms’ migration to South Florida.
Larry Fink’s company subleased 5,000 square feet at the 360 Rosemary building, which was developed by Stephen Ross’ Related Companies, The Wall Street Journal reported. The new location has been nicknamed the “snowbird office” among company employees.
The 20-story building was completed last year and is fully leased. Tenants reportedly include Paul Singer’s hedge fund Elliott Management, Goldman Sachs Group and Steven Cohen’s Point72 Asset Management, according to people familiar with the matter. (A Related Southeast representative has previously declined to confirm these as tenants to The Real Deal.)
About 35 BlackRock employees are expected to move in early next year, although more from the New York headquarters could join them. Rick Rieder, who is the company’s head of fixed income and owns property in Palm Beach County, also is expected to work in this office when in Florida.
Rieder paid $7.3 million for a teardown home in Jupiter’s Admirals Cove neighborhood early last year. Records show that the entity Rieder used to purchase the home applied for a property demolition permit last August and then filed construction notices of commencement early this year.
BlackRock, which has roughly $10 trillion of assets under management and more than 18,000 employees, will keep its Midtown Manhattan headquarters. It has no plans to relocate additional heads to Florida and its “executive leadership teams” will remain based in New York, the company said in a statement to WST.
Ross and his New York-based Related have made a hefty bet on downtown West Palm where they are the biggest Class A office building owners. Their assets include the two Phillips Point towers and CityPlace Tower. Related also purchased half of the ownership interest in Esperanté Corporate Center for an undisclosed amount last year.
Downtown West Palm is a growing hot spot in South Florida for financial firm relocations and expansions, earning it the moniker of the “Wall Street of the South.”
Miami’s Brickell has also become a magnet for the financial sector. Ken Griffin’s hedge fund Citadel and financial services firm Citadel Securities is moving their headquarters there.
Palm Beach, across the bay from West Palm, has also attracted financial industry behemoths, with Griffin’s Citadel taking over the former Neiman Marcus building at 151 Worth Avenue.
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