Did Alex Rodriguez Get Grifted On A Star Island Miami Real Estate Deal

Back in 2020, billionaire Ken Griffin acquired a nearly 1-acre waterfront lot at 14 Star Island Drive in Miami Beach. Griffin paid $24 million in 2020 and sold to Rodriguez and Jennifer Lopez in 2022 for $18.5 million. Rodriguez planned to hire an architect and build a massive mansion on the lot. Now, Rodriguez’s A-Rod Corp has just sold the property back to Griffin for $45.5 million. At first glance, this seems like a massive win for A-Rod. A $27 million profit in one year is incredible. But let’s look a little closer — those numbers aren’t quite what they seem. When Rodriguez and Lopez bought the property in 2022, it included a land swap with the estate next door. Griffin received the lot at 13 Star Island Drive in exchange for selling 14 Star Island Drive. Rodriguez and Lopez spent $32.5 million for 13 Star Island Drive. In total, they put up $51 million between the two properties. Griffin now owns both, and A-Rod Corp will only make $45.5 million in return. Factoring in closing costs and other fees, and it’s probably even a few million less than that. When all is said and done, Rodriguez’s company will likely end up losing $5.5 million and $8.5 million. Of course, Griffin probably overspent on these deals, too. But he now owns seven adjoining lots on the man-made island, as well as several other properties in Palm Beach. He plans to build a commercial tower in Miami for his Citadel and Citadel Securities companies and can rent out or re-sell the lots — or the ensuing buildings that go on them — to other tenants. Rodriguez still has several investments that are doing well. Most recently, his Monument Capital Management raised over $75 million for a multifamily fund to acquire properties in the Midwest and Sun Belt of the United States. Yet this deal is a good reminder that even though real estate might be a lucrative investment, it can go south in a hurry.