Billionaire pays $238m for NY penthouse in biggest U.S. purchase ever (2024)

Hedge fund billionaire Ken Griffin has completed the purchase of a penthouse on New York’s Central Park South for $238million - the most ever paid for a home in the United States.

The building, 220 Central Park South, is a residential skyscraper that is currently under construction.

Developed by Vornado Realty Trust, the building will have 70 floors and a total of 116 residential units by the time construction is completed.

The penthouse which Griffin is buying went into contract - meaning an offer was made and accepted - in 2015, but sales of this magnitude take years to close, according to real estate experts.

The building will stand at 950 feet tall, making it one of the tallest buildings in New York City.

It comes just days after Mr Griffin bought the exclusive $124million 3 Carlton Gardens in St James's, near Buckingham Palace in London, which had been on the market for the past two years for $163.5million.

It was designed by Robert A.M. Stern, the award-winning architect whose portfolio includes classically styled New York apartment buildings including 15 Central Park West; Philadelphia’s Museum of the American Revolution and the Comcast Center skyscraper; and two residential colleges at Yale University.

Griffin, the richest man in Illinois, closed on a penthouse that, once completed, will measure 24,000 square feet, according to The Wall Street Journal.

He was first rumored to be the buyer for the 23,000-square-foot quadplex that stretches from the 50th through 53rd floors in the building,in 2016 according to The Real Deal.

The asking price was $250million.

Griffin's company, Citadel, is looking to expand its presence in New York City. According to the Journal, it will soon move into offices at 425 Park Avenue.

His spokesperson told the Journal that Griffin was buying the residence at 220 Central Park South because he needed a place to stay when he was in town.

So far, only a handful of apartments in the building have been sold, according to Curbed New York.

The building’s amenities will include an attended lobby, a concierge, a swimming pool, a lounge, valet services, an event room, and a full service garage.

Residents will also have access to fireplaces, a restaurant, terraces and balconies, and a spa and therapy room.

There will also be a juice bar, a basketball court, a squash court, and a golf simulator.

Air conditioning will be centralized, and tenants will also be able to use a fitness center, according to City Realty.

All of the units that have been sold went for between $12million and $30million.

Steven Roth, the CEO of Vornado Realty Trust, the real estate investment trust, said that about 85 per cent of the building's units are in the process of being sold, according to The New York Times.

Having huge amounts of cash is no guarantee that one would be able to buy an apartment.

Roth is reportedly vetting each prospective tenant personally, according to The Real Deal.

Vornado Realty Trust, a real estate investment trust, is building 220 Central Park South and expects it to generate $1billion in after-tax cash flow and net income once all condo units are sold, a regulatory filing in October showed.

Vornado was represented by Deborah Kern of the Corcoran Group in the transaction, while Griffin was represented by Tal and Oren Alexander of the Alexander team at Douglas Elliman.

Griffin will have some fabulously rich and famous neighbors in the building.

British rock legend Sting and his wife, Trudie Styler, have reportedly bought a unit there.

Tong Tong Zhao, who founded a hotel management company based in China, paid $13.49million for a 2,400-square-foot two bedroom apartment on the 27th floor, according to the Times.

The $238million price tag breaks the previous record for the biggest closing sale in New York City real estate.

While Griffin's purchase is the biggest for a home in the U.S., it still lags behind the most expensive home ever sold in the world - a $361million mansion in Hong Kong.

The home, which is located in the exclusive neighborhood known as 'The Peak,' was purchased by billionaires Yeung Kin-Man and his wife, Lam Wai Ying, according to Mansion Global.

The couple owns a company which sells iPhone screens to Apple.

Michael Dell, the tech billionaire, set the previous record for the biggest acquisition of Manhattan real estate when he paid $100.5million for a penthouse at One57, the 1,005ft-high luxury condominium at 157 West 57th Street.

Both buildings are located a couple of blocks from each other in the area known as Billionaires’ Row - where a cluster of high-end residential skyscrapers tower over the southern tip of Central Park.

One of Dell’s neighbors in One57 is another hedge fund manager, Bill Ackman, who spent $91.5million for a duplex.

In 2014, New York financier Barry Rosenstein, 58, bested both Dell and Ackman when he bought an East Hampton vacation home for $137million.

At the time, it was the most expensive home ever purchased in the U.S.

In 2017, Rosenstein listed the home for $70million.

This is the second major real estate acquisition by Griffin that has been reported in recent days.

The billionaire bachelor also bought a luxury home a stone's throw from Buckingham Palace in London.

Griffin, the founder and CEO of Chicago-based hedge fund Citadel, snapped up the property in one of the country's most exclusive enclaves for a record $124million.

Carlton Gardens in St James's is the latest in a string of homes purchased by father-of-three Griffin, 50, who is worth a reported $9.9billion.

A spokeswoman for Griffin told the FT on Tuesdaythat the billionaire had recently bought the mansion.

The spokesman added: 'It is an historic property with a spectacular location, extraordinary elegance and stunning gardens. It is truly a unique opportunity to own a home in London.'

It is thought the billionaire bachelor even got the 1820s Grade II-listed home at a $39.2million discount, as for the past two years it has been on the market for $163.5million.

The house was sold by the luxury property developer Mike Spink, who bought it for $85.7million in 2012.

In November, Griffin paid a record $58.75m for the top four floors at 9 West Walton Street, known as No. 9 Walton, in Chicago.

The 25,000-square-foot space may require as much as another $20million to finish the build, according to CBS.

In addition to these lavish purchases, he also set the record for most money paid for a home in 2015 when he put down $60million for a Miami Beach penthouse.

Griffin has also spent some $250million buying up land where he plans to construct a mansion in Palm Beach, Florida.

The purchase of the penthouse at 220 Central Park South is not Griffin's only foray into New York City real estate.

In 2009, he paid $40million for a 12th floor unit at 820 Fifth Avenue, according to The Real Deal.

Griffin bought the property fromsocialite and philanthropist Lily Safra, the widow of the late Brazilian banking mogul Edmund Safra.

Griffin is also known to spend big on pricey works of art.

In 2016, he gave $500million to David Geffen's foundation for two paintings by Jackson Pollock and Willem de Kooning.

It is believed to be one of the art world's largest ever private deals.

He has also donated generously to philanthropic causes.

In 2017, he gave $125million to the University of Chicago in support of the school's Department of Economics.