Billionaires Flee California for Florida

For a few hours this week, it looked like Mark Zuckerberg and his wife Priscilla Chan had dropped as much as $200 million on a mansion on Indian Creek Island, the ultra-private enclave known as “Billionaire’s Bunker.”

By the next day, brokers were pushing back. The Jersey Mike’s founder whose home was reportedly under contract is not selling, according to sources, and the exact address tied to the Meta CEO remains murky.

Still, the news that Zuckerberg was shopping for a home in South Florida did not come as much of a shock.

California’s proposed 5 percent wealth tax on fortunes above $1 billion has triggered a fresh round of residency planning among the ultra-wealthy, and Miami brokers have said the calls are coming in fast. The ballot initiative, which still needs signatures and voter approval, is opposed by Gov. Gavin Newsom. But advisers say dozens of billionaires have already left the state ahead of a key residency cutoff (Jan. 1), and more are preparing contingency plans if the measure qualifies in November.

South Florida is the obvious landing spot. The region already hosts a deep bench of billionaire homeowners, including Jeff Bezos, who has assembled a property portfolio on Indian Creek valued at well over $300 million, and hedge fund titan Ken Griffin, who shifted his firm’s headquarters to Miami in 2022. Add in no state income tax, relatively business-friendly politics and a well-established luxury brokerage machine, and the pitch is straightforward.

The next wave appears to be tech’s inner circle. Larry Page recently spent a combined $173 million on two waterfront estates in Coconut Grove, including the 4.5-acre Banyan Ridge compound that traded for $101.5 million. His co-founder Sergey Brin has been shopping in Miami Beach and is reportedly in contract for a waterfront home on Allison Island. Brokers describe a surge in activity beginning around Art Basel in December, when several California-based billionaires were quietly touring properties from Miami to Palm Beach.

Agents say buyers are targeting the very top of the market, often off-market, and often with “make me move” pricing north of $175 million. Indian Creek has only one estate publicly listed around $200 million, but insiders say several owners would entertain nine-figure offers. Speculation has also swirled around a newly completed estate tied to Tom Brady, though nothing has been confirmed.

The migration story extends beyond Miami-Dade.

In North Palm Beach, payments executive Ronald Clarke paid $97.5 million for William Wrigley Jr.’s waterfront compound, setting a local record. In Manalapan, billionaire investor Herbert Wertheim closed on a $65 million oceanfront mansion.

Even if the wealth tax qualifies for the ballot and passes, most economists don’t expect a collapse in Northern California housing. The proposed levy would apply to a relatively small number of residents, and the Bay Area’s supply constraints and established tech ecosystem create a durable floor for demand. A handful of relocations does not suddenly free up enough inventory to reset pricing in places like Atherton or Palo Alto.

The bigger risk for California is fiscal. The top 1 percent of earners account for more than 40 percent of the state’s income tax revenue, so if even a slice of that base leaves, it’ll be a hit.

There was plenty of other news this week. New DOJ documents revealed a gatekeeping process at Jeffrey Epstein’s Manhattan townhouse, Compass shuffled some executives at the top and another week of the Alexander brothers’ trial is in the books.

“My very wealthy Russians”: Inside brokers’ frenzy to access Epstein’s townhouse

Newly released Justice Department emails reveal the scramble by New York brokers to gain access to Jeffrey Epstein’s Upper East Side townhouse. Epstein tightly controlled the off-market property at 9 East 71st Street, demanding buyer names, rejecting offers he deemed too low. Brokers floated names including Steve Cohen, Roman Abramovich and Ben Ashkenazy, but even Ashkenazy was dismissed as “not rich enough.”

Who’s in, who’s out in Compass’ new era

Compass announced Neda Navab, who joined the firm as CEO Robert Reffkin’s chief of staff in 2018, would be promoted to president of the brokerage. The move comes as Reffkin, now the head of the newly minted holding company, steps back to focus on the larger-scale strategy affecting the roughly 340,000 agents that fall under his purview after the $4 billion merger between Compass and Anywhere closed in January.

“I could hear the girl screaming”: Woman claims she witnessed Alexanders raping woman

The Alexander brothers’ federal sex trafficking trial entered a pivotal stretch this week as jurors heard from the first direct eyewitness to an alleged assault and multiple accusers recounting graphic claims from the Hamptons to Aspen.

Citadel’s Ken Griffin takes stake in 350 Park, readies for demolition

Citadel’s Ken Griffin is locking in his bet on 350 Park Avenue, taking a 60 percent stake in the joint venture that will redevelop the site into a 2 million-square-foot office tower. Vornado’s Michael Franco said Griffin opted in last December, accelerating a deal that previously gave him until 2030 to either buy the site outright for $1.4 billion or take majority control.

Waldorf Astoria hits market after eight-year condo conversion

Dajia Insurance Group, a state-run Chinese firm, is planning on putting the renovated Waldorf Astoria up for sale. The renovation reduced the hotel portion of the property to 375 rooms, while also creating a 372-unit condominium offering; those units would still be sold separately, though the property’s sale would include adjoining restaurants and retail sites.

Zillow’s stock plunged to 17-month low despite profitable quarter

Zillow’s stock opened down 4 percent following Tuesday night’s earnings, but fell roughly 17 percent over the course of the day. At press time, the stock was trading at $45.42, its lowest mark since August 2024. The home search portal is currently facing a number of lawsuits, and those legal fees appear to be weighing on the company’s bottom line after the company announced lower-than-expected estimates for the first quarter of 2026.

Jonathan Miller and Douglas Elliman break up data partnership after 32 years

Appraiser Jonathan Miller’s relationship with Douglas Elliman is coming to a close after 32 years. The head of the Miller Samuel appraisal firm and author of the market reports published with the brokerage’s branding on contracts, sales and rentals in the nation’s major markets, announced Wednesday that the Feb. 12 report would be his last under the partnership.

Will Oceanwide Plaza creditors take a shot or pass on downtown eyesore?

Now that a federal bankruptcy judge approved an intramural battle between lenders on Oceanwide Plaza, creditors are facing a decision: Make their own or joint credit bids and try to finish the project or sell it off in hopes of recouping sunk costs. The bankruptcy exit agreement recently reached over downtown Los Angeles’ problem project clears the way for a potential deal.

Bondholders accuse American Dream, NJ town of rigging mall valuation

Bondholders behind roughly $800 million in debt tied to the American Dream megamall allege its owner and the Borough of East Rutherford colluded to slash the property’s valuation and undermine the bonds backing the project. U.S. Bank Trust, acting for bondholders led by Nuveen, claims the mall’s assessed value fell from as high as $3.3 billion in recent years to $2.5 billion and then to about $1.65 billion after a tax court ruling, gutting payments in lieu of taxes (PILOTs) that secure the debt.