Ken Griffin's Chicago Penthouse Contracted for a Significant Loss
Ken Griffin, the founder of Citadel, has been slowly exiting the real estate market in Chicago. This comes after he relocated his hedge fund from Chicago, a city plagued by crime and governed by extreme left-wing Democrats, to Miami in 2022. The decision to move his hedge fund and family to Florida was driven by the high levels of violent crime and an unfavorable tax environment in Chicago.
Data from Zillow, as reported by Bloomberg, indicates that Griffin's 38th-floor penthouse at 9 West Walton is under contract. Griffin never resided in the 7,500-square-foot condo, which was marketed as unfinished. The condo was listed 89 days ago in July for $11 million, which is half of what Griffin paid for it in 2017.
Jameson Sotheby's International Realty, the listing broker, described the condo as a unique opportunity to create a dream home of over 7500 square feet at Chicago's most prestigious address, No. 9 Walton. The condo also boasts a private 39th-floor interior space and rooftop pool, accessible via a private elevator in the unit.
Bloomberg also pointed out that Griffin, who is 36th on the Bloomberg Billionaires Index, has been attempting to sell other residential properties. He has faced challenges in doing so due to the lagging property prices in Chicago compared to cities like Miami and New York. Griffin has previously sold properties in the Park Tower and Waldorf Astoria, each at losses exceeding $3 million. At No. 9 Walton, Griffin spent nearly $59 million on the penthouse he's now selling and three other units, marking the largest residential real estate transaction in Chicago's history.
Griffin likely considers the multi-million dollar loss a worthwhile price to pay to escape a deteriorating metropolitan area. In a 2021 speech at the Economic Club of Chicago, Griffin warned that Chicago's future would be limited to "years, not decades" if the issue of violent crime was not addressed adequately.
Griffin compared Chicago to Afghanistan, stating that it was becoming increasingly difficult to maintain the city as the global headquarters due to the high levels of violence. By 2022, Griffin announced that Citadel's headquarters would be relocated to Miami over several years. In a letter to his employees, he revealed that he had personally moved to Florida, a state that does not collect personal income tax. He also stated that Florida has a better corporate environment than Chicago.
This raises the question of who will bear the burden of the soaring, unfunded pension debt of the unionized public workforce if all the wealthy individuals leave Chicago and sell off their real estate. The answer seems to be the unfortunate individuals who remain in the city.
Bottom Line
The situation in Chicago is a stark reminder of the consequences of unchecked crime and unfavorable tax environments on the real estate market and the broader economy. Griffin's decision to sell his properties at a loss to escape the city paints a grim picture of the city's future. What are your thoughts on this matter? Feel free to share this article with your friends and discuss. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.
Ken Griffin's Chicago Penthouse Contracted for a Significant Loss
Ken Griffin, the founder of Citadel, has been slowly exiting the real estate market in Chicago. This comes after he relocated his hedge fund from Chicago, a city plagued by crime and governed by extreme left-wing Democrats, to Miami in 2022. The decision to move his hedge fund and family to Florida was driven by the high levels of violent crime and an unfavorable tax environment in Chicago.
Data from Zillow, as reported by Bloomberg, indicates that Griffin's 38th-floor penthouse at 9 West Walton is under contract. Griffin never resided in the 7,500-square-foot condo, which was marketed as unfinished. The condo was listed 89 days ago in July for $11 million, which is half of what Griffin paid for it in 2017.
Jameson Sotheby's International Realty, the listing broker, described the condo as a unique opportunity to create a dream home of over 7500 square feet at Chicago's most prestigious address, No. 9 Walton. The condo also boasts a private 39th-floor interior space and rooftop pool, accessible via a private elevator in the unit.
Bloomberg also pointed out that Griffin, who is 36th on the Bloomberg Billionaires Index, has been attempting to sell other residential properties. He has faced challenges in doing so due to the lagging property prices in Chicago compared to cities like Miami and New York. Griffin has previously sold properties in the Park Tower and Waldorf Astoria, each at losses exceeding $3 million. At No. 9 Walton, Griffin spent nearly $59 million on the penthouse he's now selling and three other units, marking the largest residential real estate transaction in Chicago's history.
Griffin likely considers the multi-million dollar loss a worthwhile price to pay to escape a deteriorating metropolitan area. In a 2021 speech at the Economic Club of Chicago, Griffin warned that Chicago's future would be limited to "years, not decades" if the issue of violent crime was not addressed adequately.
Griffin compared Chicago to Afghanistan, stating that it was becoming increasingly difficult to maintain the city as the global headquarters due to the high levels of violence. By 2022, Griffin announced that Citadel's headquarters would be relocated to Miami over several years. In a letter to his employees, he revealed that he had personally moved to Florida, a state that does not collect personal income tax. He also stated that Florida has a better corporate environment than Chicago.
This raises the question of who will bear the burden of the soaring, unfunded pension debt of the unionized public workforce if all the wealthy individuals leave Chicago and sell off their real estate. The answer seems to be the unfortunate individuals who remain in the city.
Bottom Line
The situation in Chicago is a stark reminder of the consequences of unchecked crime and unfavorable tax environments on the real estate market and the broader economy. Griffin's decision to sell his properties at a loss to escape the city paints a grim picture of the city's future. What are your thoughts on this matter? Feel free to share this article with your friends and discuss. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.
