Two Hedge Fund Billionaires Spend Over $200 Million On Palm Beach Mansions
They made the money, now it’s time to spend it.
Just days after we learned that the rich got much richer in 2020 as the top 15 hedge fund billionaires added a cool $23 billion to their net worth, we now find out how they are spending it.
Back in 2016, when David Tepper announced he was moving his home and business to Florida, he set off alarms with the tax accountants at his prior home state of New Jersey: He and his hedge fund Appalloosa paid so much in state tax that his departure put New Jersey’s budget at risk. Four year later however, in 2020, New Jersey lawmakers breathed a sigh of relief when Tepper returned, shoring up the state’s finances.
But for the perpetually fiscally-challenged Garden State it may be time to freak out again. As the WSJ reports, Tepper has rekindled his love affair with the Sunshine State and has planted a new flag in Florida soil. The billionaire “balls to the wall” hedge-fund manager and owner of the Carolina Panthers football team is reportedly in contract to buy a $73 million mansion in Palm Beach.
Amid the exodus of hedge funders from the tri-state area who are fleeing New York’s soaring taxes and piling into the tax-free state, it wasn’t immediately clear whether Tepper and his family will make Florida their primary residence again; a WSJ call to New Jersey Senate President Steve Sweeney’s office was not immediately returned.
If it closes, the WSJ notes that the deal would be the latest in a string of ultra-pricey transactions in Palm Beach where billionaires are running out of houses to buy.
The sellers of the Tepper home are longtime Palm Beach residents Patrick and Lillian Carney. The property, which wasn’t publicly listed for sale, sits directly on the ocean and on the edge of the Palm Beach Country Club. The Carneys had approval to build a roughly 12,000-square-foot Bermuda-style house on the site, records show.
Records show Tepper still owns a condominium at the Ocean House condominium complex in Miami Beach, which he bought for $10.7 million in 2017.
At the same time, in another transaction involving land formerly owned by Donald Trump, Tiger Global Management executive Scott Shleifer who is co-founder of the firm’s private-equity unit which oversees $40 billion, bought a nine-bedroom, 21,000-square-foot house which was listed for $140 million a few weeks ago, Bloomberg reported.
The purchase price set a new price record, not only in Palm Beach but likely for Florida, according to Palm Beach Daily News.
The never-lived-in house was developed on speculation and listed for sale in early January with a record-setting price tag for Palm Beach of $140 million, completely furnished.
The house and its separate guest house have a total of nine bedrooms and 21,066 square feet of living space, inside and out, of which 15,350 is under air conditioning, the sales listing shows. Just south of the estate owned by billionaire Nelson Peltz, the property lies on a stretch of beachfront sometimes called the North End’s Billionaires Row.
A trust associated with Russian billionaire Dmitry Rybolovlev bought the investment estate in the 500 block of North County Road from Trump in July 2008 and eight years later razed a mansion there to subdivide the land. In October 2017, Rybolovlev sold the lot at No. 535 to the developers of the house that changed hands this week.
As noted earlier this week, Tiger Global earned its investors $10.4 billion in 2020 “the most of any hedge fund that made the annual list of the top 20 managers compiled by London fund-of-funds firm LCH Investments,” InstitutionalInvestor.com reported in late January.
The transaction smashed a previous price record set in June 2019 by Ken Griffin who bought an oceanfront house at 60 Blossom Way adjacent to his massive South End estate for $99.13 million from investor Frank McCour.
For their sake, and also for the sake of other billionaires, one can only hope that the rioters du jour never figure out that instead of burning down pastry shops and looting Nike stores, if they want to achieve tangible change they should focus all their attention on Palm Beach which has more billionaires per square mile than any other place in the world.
Sat, 02/13/2021 – 09:55